Looking at the EUR/GBP chart, we can see the spike from the 0.849 level to the high of 0.859 on May 25 and its failure to stabilize and consolidate, which led to the retraction back to the 0.849 level and briefly below it, in the from the 0.8465 where it found support on May 26.
Since then it managed to rebound back up to the 0.849 level for the remainder of the week, mainly trading between an overhead resistance of 0.853 and temporary support of 0.849 level. It was last found trading in the 0.852 range early in today’s session.
Today, we can expect an extension of the sideways action or a possible move above the overhead resistance of 0.853. If however, it doesn’t manage to hold to the current level then a move below the 0.849 and close to the 0.8465 support level can be expected.
