The EURGBP has been moving much lower over the past few weeks and has now fallen into the Very Big Round Number (VBRN) of 0.800. Quite often these VBRN’s can act as psychological support and resistance areas in the market.
On the 4hr chart of this pair we can see some interesting price action at this support level and VBRN. Price Action on this pair has produced two bullish false break Pin Bars which could be signalling buyers are starting to take control and push this market higher.
If the buyers can win the battle, the near term resistance for this pair comes in around a little higher (see chart below). If price continues the recent move lower, the VBRN of 0.8000 is going to have to give way.
EURGBP 4HR CHART – 7 NOV 2012
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