The EUR/GBP is having a possible turning year. The pair opened 2015 at 0.7815, fell to a low of 0.6937, then rallied about 400 pips to the current price of 0.7309. The EUR/GBP has been in a secular bear trend for the past two-and-half years. But the current bounce at 0.7000 is different. As we can see on the chart below, the two bounces near this round figure are the largest bounce in pips terms during the past 3 years. All other retracement fizzled out after 200-300 pips.


This leads me to think that we may have seen the bottom for this pair, at least in 2015 and possibly further out as well. But what about the upside? With a bunch of previous resistance levels clustered right above the current price at 0.7388, 0.7482, 0.7500 and 0.7591, the EUR/GBP will have hard time breaking higher. Thus I'm betting on little change from the current price of 0.7304 to 0.7311.

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