Pair’s recovery from the low of 1.0565 despite an upward revision of the US Q3 GDP and heightened uncertainty ahead of the Italian referendum suggests the technical recovery in the pair is likely to continue and the pair could move towards the inverse head and shoulder neckline level seen around 1.09.
On the downside, only a daily close below 1.0518 (Nov 24 low) would open doors for a sell-off towards 1.04 levels.