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EURGBP targets 0.80 above 0.75

Friday's bullish close confirmed a rounding bottom pattern to project a target around the psychologically round number of 80




The break above 0.750 confirmed a rounding bottom which projects an approximate target around 0.8067. However due to the psychological barrier around 0.80 then this may provide a more sensible target.

Before breaking out, price managed to also break the bearish trendline from the August '13 high to provide an additional bullish confluence going forward. 

At time of writing EURGBP has witnessed eight consecutive bullish closes, with Friday's close being outside of the upper Bollinger Band. Therefore a slowdown of the trend or potential retracement have to be considered which, if presented, may provide a bullish opportunity to enter above 0.75 for the anticipated run towards 0.80. 

The main drag on GBP is the fear of Brexit but this theme will take some time to play out as it is politically sensitive. The Euro has also experienced inflows as a safe haven this year, following global growth concerns and oil plummeting below $30 per barrel. However as outlined in this video today there is potential for bounces higher for risk markets before the trend resumes, which should also see EURGBP change its tune  in the near-term. 

Only a break below 0.75 invalidates the rounding bottom setup so until then, an eventual run to the 0.80 target is assumed. 



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