EURGBP- With a clearance of the 0.8852 level now seen, further upside risk is now building up towards its Oct 25’2010 high at 0.8940 level where a break will resume its long term uptrend.
This will set the stage for more strength towards the 0.9000 level, its big psycho level where the cross could encounter a price hesitation because of the psychological importance of that level. Its daily studies are bullish and pointing higher supporting this view.
On the other hand, the risk to our upside outlook will be a return below the 0.8852 level and the 0.8715 level. This will pave the way for more declines towards the 0.8653 level followed by the 0.8624 level and then the 0.8532 level. All in all, the cross continues to maintain its medium term bullishness having resumed its uptrend.