The bullish outlook for EURGBP is in tact as the pair remains above the key 0.7500 level. After the formation of a double bottom trend reversal pattern, the market rose to the highest level in over 15 months around the 0.7930 area. The scope for more upside is supported by the fact that prices have crossed above the 50% long term Fibonacci retracement level (0.7870) of the downleg from 0.8813 to 0.6935 (February 2013 to July 2015 decline). The next target would be the 61.8 Fibonacci at 0.8093. In the case of a drop from current levels, support lies at the 38% Fibonacci level at 0.7650.
Looking at the technical indicators, the moving averages are supporting a bullish bias, since the 50-day moving average crossed above the 200-day moving average and is rising. The momentum indicators – RSI and MACD are both in bullish territory.
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