Technical Update - GBPUSD extending uptrend. EURGBP close to test key support
Kim Cramer Larsson
Technical Analyst, Saxo Bank
GBPUSD extending uptrend eyeing 1.23. EURGBP close to test key support at 0.8566
GBPUSD broke yesterday out of its rangebound trading behaviour with a move higher extending the uptrend towards next resistance at around 1.2293 which is key level for the medium-term trend.
A close above 1.2293 and GBPUSD has confirmed bullish medium-term uptrend on weekly time period. If weekly RSI closes above 60 threshold it will have further confirmed the uptrend where next level likely to be reached is the 0.618 retracement of the 2021 peak to trough this September at 1.2745.
To reverse this bullish picture for GBPUSD a close below 1.1330 is needed. First indication of this to unfold wis likely to be a close back below support at 1.1760
EURGBP was rejected at the 0.382 retracement at 0.8835 failing to even test key resistance at 0.8867 and is now likely to test support at 0.8566. A close below is likely to fuel further selling down to around 0.84-0.8340.
To reverse this scenario EURGBP must close above 0.8828
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