EURGBP to pull back in the short term
The EURGBP is coming off a 6% run in the last 3 months and is looking to continue its uptrend. The price is currently very near resistance of 0.89902 and it looks like it will retest the lower channel in the coming days as it pulls back to around the 0.896 level. This is supported by the RSI now being at 60 despite the price not being in the upper half of the channel. Recommend shorting the stock as soon as it confirms the downtrend to the bottom of the channel. The price will then probably consolidate in the small triangle formed between the channel and the resistance line.
The price will then look to test the bottom part of the channel where it will either break below or bounce back up. It is likely that the support holds and traders should wait for confirmation before trading the trend. If the trend holds, target prices between the 0.91 or 0.92 range is recommended with a trailing stop loss on the bottom of the channel as it goes up.
If the price does break down, can look for a quick short term trade to 0.8219 levels before price encounters the next resistance level and probably moves back up to bounce off the lower channel.
The price will then look to test the bottom part of the channel where it will either break below or bounce back up. It is likely that the support holds and traders should wait for confirmation before trading the trend. If the trend holds, target prices between the 0.91 or 0.92 range is recommended with a trailing stop loss on the bottom of the channel as it goes up.
If the price does break down, can look for a quick short term trade to 0.8219 levels before price encounters the next resistance level and probably moves back up to bounce off the lower channel.
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