EUR/GBP may rise 35 - 51 pips
Our preference
The upside prevails as long as 0.8501 is support.
Alternative scenario
The downside breakout of 0.8501 would call for 0.8475 and 0.8459.
Comment
The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 0.8497 and 0.8503). Finally, the EUR/GBP is trading above its upper Bollinger band (standing at 0.8525).
Daily and weekly charts are also bullish.
Our preference
The upside prevails as long as 0.8501 is support.
Alternative scenario
The downside breakout of 0.8501 would call for 0.8475 and 0.8459.
Comment
The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 0.8497 and 0.8503). Finally, the EUR/GBP is trading above its upper Bollinger band (standing at 0.8525).
Daily and weekly charts are also bullish.