EUR/GBP may rise 14 - 22 pips

Our pivot point stands at 0.8506.

Our preference

The upside prevails as long as 0.8506 is support.

Alternative scenario

The downside breakout of 0.8506 would call for 0.8494 and 0.8487.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (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 0.8507 and 0.8508). Finally, the EUR/GBP has crossed above its upper Bollinger band (0.8516).

Supports and resistances

0.8555 **

0.8548 *

0.8541 **

0.8533

0.8519 last

0.8511

0.8506 **

0.8494 *

0.8487 **

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