FXstreet.com (Córdoba) - The Euro rose against Cable to 0.9040 during the Asian session posting a fresh one-week high. EUR/GBP then pulled down to 0.8995 but the Pound was unable to hold below 0.9000. Currently the pair trades at 0.9010/13, 0.09% above today's opening price. The Euro has risen in the last three sessions against the Pound ad currently trades above a downtrend line in four hours chart.
To the downside support is located at 0.8980 and below at 0.8945/50. If the Euro rises further it could face resistance at 0.9040 (intra-day high) and above at 0.9065/70 (Nov 12 high) and 0.9095/0.9100.
Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, comments: As the mean view is that this pair should hold above 0.8800 for the next twelve months, many will have to review assumptions and economic consequences. Long term only when this pair starts holding consistently under 0.8400, two standard deviations form the calculated mean of the last twenty years, is long term sterling weakness avoided.