Forex: EUR/GBP upside capped at 0.8150

FXstreet.com (Barcelona) - The pair is trading in the upper end of today's range, around 0.8140 following the improving risk-on trade after the US has averted the 'fiscal cliff'. Both the sterling and the single currency are markedly appreciating against the greenback, although the pair has failed to follow through the 0.8150 mark so far.

According to I.Spivak, Currency Strategist at DailyFX, "Prices put in a Bearish Engulfing candlestick pattern below rising channel resistance (now at 0.8231), hinting a move lower is ahead. A break below resistance-turned-support at 0.8155 initially aims for a rising trend line set from late July (0.8067).

As of writing, the pair is up 0.22% at 0.8139 facing the next resistance at 0.8163 (MA10d) ahead of 0.8200 (hourly high Dec.28) and 0.8219 (Upper Bollinger).
On the flip side, a breach of 0.8105 (low Dec.31) would bring 0.8098 (low Dec.14) and finally 0.8093 (50% of 0.7961-0.8225).