EUR/GBP broke above resistance at 0.8793 indicating that a low already is in place at 0.8675 and a new impulsive rally is in motion to above the former peak at 0.9499. Short-term we expect minor support near 0.8765 will be able to protect the downside for renewed upside pressure through resistance at 0.8867 that is the neck-line of a S/H/S bottom and a break above here will target at least 0.9067, but this rally could easily extend much higher.
Short-term look for a break above minor resistance at 0.8809 as indication that the upside pressure has resumed and the neck-line at 0.8867 will be tested shortly.
R3: 0.8914
R2: 0.8868
R1: 0.8811
Pivot: 0.8780
S1: 0.8765
S2: 0.8743
S3: 0.8713
Trading recommendation:
We bought EUR at 0.8765 and we have placed our stop at 0.8670
