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Forexpros.com Daily Analysis - 30/06/2011

Cable and Euro at major Resistance lines

US dollar traded lower against the euro and pound in recent days, lost more value against the euro as Eur/Gbp seems to be in a powerful uptrend mode.

Well, looking on a 4h charts below, pairs may reverse from their resistance lines, at least temporary.

Eur/Usd:

Eur/Usd extended its gains in recent sessions after the Greek Parliament approved austerity measures. Pair has moved towards the red resistance line connected from early May, where gains may slow down. Keep in mind that pair is still trapped in a triangle range, and until we see a break above 1.46 with daily close around those levels, uptrend cannot be confirmed. We may see even more choppy price action, if pair forms a reversal from red resistance line! In either case however, pair is bullish as long the market trades above 1.4090.

Gbp/Usd:

Cable reserved deeper than we anticipated but a reworked wave count still shows bearish possibilities. We are now looking fro a wave (iii) low at 1.5911 from where only temporary pull-back may be unfolding, and the reason is a neckline which will now tend to react as a resistance. A successful reversal from 1.6150, but after a completed three wave recovery within wave (iv), should send pair back into the lows. Meanwhile the upper base channel resistance line must hold!

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