EURGBP regained the 0.75 handle and is peaking above the weekly Ichimoku cloud on Tuesday after a steady rally off the key 0.7000 level in recent weeks. The pair hit a 1-year high of 0.7554.
There is scope for further upside momentum as the RSI is rising and above 50 in bullish territory. Also, the tenkan-sen line has crossed above the kijun-sen line, which is a bullish signal.
Near term support is at 0.7390. A break below this would see a retest of 0.7000. To the upside, the next target is 0.7651,which is the 38.2% Fibonacci of the downleg from 0.8813 to 0.6935.
Looking at the bigger picture, EURGBP has been in a downtrend since the February 2013 peak of 0.8813 down to the July 2015 low of 0.6935. Prices have been consolidating since then. The market would need to see move back above the 50% Fibonacci level (0.7870) to see a shift in the trend.
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