Thread: FBS Holdings: EUR/GBP will rise to 85.32

Technical analysts at RBC Capital Markets in Toronto claim that the single currency may rise to the 3-month maximum versus British pound. Such forecast is based on the fact that the last euro sell-off didn’t make its rate hit new minimum for the first time since February.

In August the pair EUR/GBP fell to 81.42 pence staying above June minimum at 80.68 pence. RBC strategists note that as European currency closed yesterday above 83.20 pence that means that the trend reversed upwards.

According to the bank, euro’s rate will be moving towards 84.82 pence level representing 38.2% Fibonacci retracement of its slump from March to June. There’s a possibility of the pair’s advance to July maximum at 85.32 pence, the highest level since May 28, believe the specialists.

Economists surveyed by Bloomberg expect that EUR/GBP will rise to 82 pence be the end of 2010.



Chart. Daily EUR/GBP

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