EUR/GBP may rise 21 - 31 pips

Our pivot point stands at 0.8323.

Our preference

The upside prevails as long as 0.8323 is support.

Alternative scenario

The downside breakout of 0.8323 would call for 0.8306 and 0.8296.

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 positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 0.8329 and 0.8330). Finally, the EUR/GBP is trading above its upper Bollinger band (standing at 0.8343).

Supports and resistances

0.8397 **

0.8386 *

0.8376 **

0.8366

0.8345 last

0.8330

0.8323 **

0.8306 *

0.8296 **

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