Forex Technical Update

Previous: EUR/GBP Trying to Fight Off Break of Trendline (9/25)

EUR/GBP 4H Chart 9/26/2012 9:20AM EDT

eur/gbp 9/26/2012

The EUR/GBP is at the cusp of clearing a rising trendline that goes back to mid-August. After fighting it from the 200-4H SMA and 50% retracement of 0.7935, the EUR/GBP remained in a declining channel seen in the 4H chart as the 9/26 session began. Now as we enter the 9/26 US session, the pair is back at it, trying to continue channeling below the rising trendline.

If the break extends below the 0.7935 level, the next support is near 0.79 handle down to the 0.7893, 61.8% retracement and the 0.7885 support pivot.

Note that around the 0.79 level, the EUR/GPB is testing another trendline, one that goes back to July, and is not as sharp as the one that is being broken now. A break below this “last line of defense” exposes the 0.7756 2012-low.

EUR/GBP Daily Chart 9/26/2012 9:25AM EDT

EUR/GBP 9/26/2012 Daily chart

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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