EUR/GBP: continuation higher

The EUR/GBP pair is still rising in a counter-trend rally although it has hit stiff resistance from the 50-day MA. A break above 0.7926 would provide strong confirmation of a continuation higher and target the 0.7962 highs. There is a probable Elliot wave 5th wave unfolding after the recent 4th wave correction of the initial leg higher further supporting the bullish outlook. Strong support from monthly pivot lies at 0.7892; the bears will probably not reclaim control unless there is a break down below the 0.7840 trend-line.

Written by Forex4you