Today we hear from Luc Luyet at MIG Bank who suggests that while the euro pound currency pair is stuck in a sideways motion, gains for the euro in the longer term are possible:

"EUR/GBP is moving sideways. However, the rising trendline favours a phase of strength towards the resistance area between 0.8551 and
0.8562. A key support is at 0.8470.

"From a longer-term perspective, the recent inability to make any significant new lows below the support at 0.8411 and the break of the short-term declining trendline favour a base formation.

"Therefore monitor the resistance area between 0.8597 and 0.8637."

Technicals for the pound dollar rate

Turning to MIG's forecasts for cable, Luyet says:

"GBP/USD has broken the resistance area defined by 1.5684 (06/06/2013 high) and the 200-day moving average). Another resistance is given by 1.5879. Given the short-term overextended rise, we do not expect a break of this resistance in the next few weeks.

"Hourly supports are given by 1.5616 (14/06/2013 low) and 1.5489 (07/06/2013 low).

"In the longer-term, the break of the horizontal range defined by the strong support at 1.5235 (13/01/2012 low) and the strong resistance at 1.6302 (30/04/2012 high) calls for a further medium-term decline.

"Therefore, the rise from 1.4832 is viewed as a rebound. A key resistance area is defined by 1.5606 (01/05/2013 high) and 1.5684 (06/06/2013, see also the 200-day moving average).