The EURGBP cross has been the most well placed and tradable pair to date while maintaining a more positive bullish tone ever since registering its low @0.7760 dated July 23; a secondary-higher low @0.7880 consolidation before breakout higher and re-established its first high @0.8110 dated the 14th of September. After a corrective move low its current price is the second attempt to re-capture this higher price level.
Currently, registered an 0.8135 as of this writing and a session correction at the 0.8119 level.
There will likewise be some pullbacks as the initial break from it resistance line would draw short-covering and liquidation from net shorts after indicating a weekly doji bar from last week's closing. Prices are within is rising channel especially for those who would be able to tolerate reasonable corrective move before the next leg higher can be attained.
But the difficulty exist due to the gradual strength that the USD is slowly regaining.Although, there exists a bullish market potential in the mid-term plan for the EURGBP cross rates but just be extra careful with the drawbacks of the EURUSD on a daily basis that may influence the cross to its negative lower band. On the fundamental side, the market's reaction to Spain's credit line facility have supported the Euro strength reaching a 1.3120 HI during the session. A mid-week session to session counter-trend before the week's closing may also be made unless the two consecutive follow-through be made by institutional players.
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