EURGBP could correct to 0.74 or continue to 0.8117

EURGBP completed a major leg of correction since last December (after the ECB failed to deliver) and has been rising steadily. The weekly chart on the left marks the hidden bearish divergence and indicates a move to the downside if we get a weekly close below 0.78.

On the right, the daily chart shows prices being rejected by the median line with a bearish divergence, signaling a correction to 0.740 if prices can close below 0.775 on the daily time frame.

Alternate view: Buy EURGBP only above 0.7918 in which case we can expect the upside to continue towards 0.811 and eventually to 0.84.

Key levels:

• Downside likely on a close below 0.78 - 0.775 for 0.76 and 0.74
  
• Upside likely on a close above 0.7918 for 0.81170/0.82