EUR/GBP may rise 15 - 23 pips

Our pivot point is at 0.8395.

Our preference

The upside prevails as long as 0.8395 is support.

Alternative scenario

The downside breakout of 0.8395 would call for 0.8382 and 0.8375.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 0.8397 and 0.8398). Finally, the EUR/GBP has crossed above its upper Bollinger band (0.8405).

Supports and resistances

0.8446 **

0.8438 *

0.8431 **

0.8423

0.8408 last

0.8400

0.8395 **

0.8382 *

0.8375 **

Number of asterisks represents the strength of support and resistance levels.