EURGBP- With a follow through higher on the back of its last week gains now underway, further upside momentum is likely in the days ahead. As long as the 0.8592 level continues to hold as support, EURGBP’s rally started from the 0.8354 level should recapture the 0.8671 level. A break of this level will open the door for a run at its Nov 08’10 high at 0.8690 and subsequently, the 0.8816 level. Its daily and weekly studies are bullish and pointing higher supporting this view. On the other hand, on a failure to break and hold above the 0.8671 level, risk of a decline back towards the 0.8592 level is likely to occur. This level is expected to reverse roles and provide support, but if it fails, its Jan 18’2011 low at 0.8332 will be targeted ahead the 0.8284 level, its 2011 low. All in all, having triggered a recovery higher, further upside risk is likely.
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