EURGBP has found support in Mid-April around the 0.87 area and since then has started 1) building a floor and 2) shaping a trendline hypothesis. After having stopped in correspondence of 0.905, the fast 8 day EMA has steepened again and the spot price is now rising in a convincing way
At the moment we see the movement as technically very wealthy with all the indicators positively inclined without signaling any excess yet. Fair to be said that the reported Volume looks like it is decreasing on this last up move and the price right now is ‘cutting’ the upper BB: that should probably be seen as continuation signal rather than a worrying one.
We think this cross could continue its run at least till a level within 0.92 and 0.93. As for a potential entry point, we should be aware of the fact that shorter time frames, like the Hourly one ARE overbought and waiting for some Fibonacci retracements could make sense.
This morning, GBP is showing weakness also against the USD with Cable down 0.20% at this point at 1.2311 and lower to Friday lows. Consider that USD is not shining at all today, with DXA trading -0.32%