The cross edge lower towards 0.7163 has probably made a double top between 0.7384 and 0.7380. The near and medium terms were capped by the double top at a 2-month high of 0.7384. All intervals favor bears. The current scenario has been providing mixed opinions.Concerns over the Greek issue added the new factor into the bearish view. The euro is likely to remain under pressure on the back of growing concerns about Greece as no agreements between Greece and its creditors had been reached. These factors favor bears. Besides, the UK is slowly approaching its general election scheduled for May. Market participants expect the pound to get under a downward pressure. These factors add bearish views to GBP. We analyze the cross with the help of technical methods. As I said, all time frames favor bears.
We initially covered this cross at 0.7250 gaving buying recommendation above 0.7305 with targets at 0.7350 and 0.7400. The cross made double top at 0.7384 drifted from the capped level. For last 5 sessions, the cross has been consolidating in a very right range between 0.7230 and 0.7163 (just 67 pips). The cross closed below the previous swing level of 0.7222 and faced parallel resistance at 0.7230. That resistance level forced the cross to move lower at every spike. Amid these technical factors, we recommend selling with sl 0.7230. Safe traders can sell below 0.7150 with targets at 0.7118 and 0.7100. In case the cross gave an upside breakout from the tight range, buy above 0.7230 with small targets at 0.7265 and 0.7270. Until the price closes below 0.7275, use every rise to sell.
Supprot:0.7163, 0.7153, 0.7100
Resistance:0.7200, 0.7230, 0.7275
