The EURGBP is trading higher this morning with price action breaking out to new weekly highs above the pair’s daily R4 Camarilla pivot. Today’s R4 pivot is found at .7123, and price first attempted to break through this value on mixed GBP Retails Sales data. Since the initial move, price has retraced back towards this value of resistance. As previous resistance has become new support, bullish traders may continue to keep their bias if prices remain above this value. Bullish targets can begin with 1x extension of today’s 39 pip trading range towards .7162
In the event of a false breakout, traders will look for prices to return back inside of today’s trading range. R3 resistance, as seen in the chart above, is found at a price of .7106. If the EURGBP falls below this point, traders will look for prices to test values of support, including today’s S3 pivot point found at .7070. Conversely a decline under the S4 pivot at .7053 would suggest a broader bearish reversal is in play. In either scenario, this would suggest an end to the current bullish EURGBP momentum, while invalidating this morning’s breakout.