The FX Specialist view – The earlier fall in the EUR/GBP cross came to a temporary halt in June, and the market has been reluctant to resume its medium term bear path. Recent strength is not yet seen as the precursor to any major trend turnaround, but it still delays lower values.
- MONTHLY CHART
Prior breaks of support signalled a medium term bear move underway, with a 50% pullback level providing effective support.
The current rally is presumed temporary – note resistance here from the old triangle underside, just above 0.8800. - DAILY CHART:
Following earlier support from around a s/term 76.4% level bulls have driven price through a bear channel top projection and, initially, through the 0.8532 Jul high.
This implies loss of bear momentum and invites further gains.
Nearby resistance comes from a 50% recovery level at 0.8607, and small channel top just above at 0.8630. A break through this would provide a boost for the move.
S/term dips should currently prove short-lived. Note first support could emerge around the 0.8400 area.
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