EURGBP is continuing the uptrend after the formation of the double bottom trend reversal pattern. The shift to a bullish trend was confirmed after the market broke above the key 0.7500 level in January and prices are now targeting the 50% Fibonacci retracement level at 0.7870. This is the retracement of the downleg from 0.8813 to 0.6936 (February 2013 to July 2015 low). Once this resistance level is breached, a continuation up toward the 0.8000 level could be seen next.
Technical indicators are supporting further upside. MACD is above the zero line and RSI is in bullish territory. However, due to the RSI being close to overbought levels, there could be some consolidation or a pullback in prices in the near term. Support lies at the 38.2% Fibonacci at 0.7650. A break below key support at 0.7500 would weaken the near term bullish bias.
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