EURGBP has been looking increasingly bullish since late August and the recent golden cross of the 50- and 200-day moving averages underlines the positive momentum. The pair hit an 8½-month high of 0.7492 today, breaking past the May high of 0.7483. The near-term bias remains strongly bullish with RSI and the stochastics trending sharply upwards.
The strong positive momentum is likely to continue in the medium term as all indicators are pointing upwards. As prices approach the key psychological level of 0.75, the next resistance level in sight is the February high of 0.7591.
On the downside, 0.7332 is the support level to watch out for – a drop below this level would take prices below its recent two-week trading range and weaken the upside bias.
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