FMFX

EURGBP Looking To Rally

The EURGBP made new lows last week at 0.8673 respecting the 0.8670 major short term support level on the daily chart. The pair then bounced out of that level in a corrective rally to 0.8800 ahead of the 38.2% Fibonacci retracement level of the entire breakdown from 0.9040 - 0.8673 at 0.8814.

However, instead of making new lows, the EURGBP made a higher high as the market opened on Sunday at 0.8679. When the pair broke above the 38.2% Fibonacci level (circled above) after the failure at the lows, that was the signal that the pair was headed higher. And in fact it did making a session high today at 0.8670.

Breaking through the 61.8% Fibonacci level, the pair look like it will target 0.8800 and break above to test 0.8810/20. Only a break above shifts focus back to bulls.