EUR/GBP’s rally extended to as high as 0.9317 last week and breached 0.9305 key resistance. Larger up trend is likely resuming. Initial bias stays on the upside this week. Next near term target is 100% projection of 0.8489 to 0.9051 from 0.8891 at 0.9453. On the downside, though, break of 0.9198 minor support will indicate short term topping and bring lengthier consolidations first.
In the bigger picture, up trend from 0.6935 (2015 low) should be resuming. Sustained break of 0.9305 will confirm and target t 0.9799 (2008 high) and then 61.8% projection of 0.6935 to 0.9305 from 0.8472 at 0.9937. In any case, medium term outlook will remain bullish as long as 0.8472 support holds, in case of deep pull back.
In the long term picture, we’re holding on to the view that rise from 0.6935 (2015 low) is resuming the up trend from 0.5680 (2000 low). As long as 0.8472 support holds, further rise should be seen through 0.9305 to 0.9799 and above down the road.
