Ransquawk

EURGBP since establishing 0.8745 low has consistently climbed up and thus reached the supply zone between 0.8984 and 0.9025. Upon reaching the quotation zone, pair rebounded and managed to break the trend line extended at the bottom of the recent bull run.

As you can see on the H4 chart below, quotes tested yesterday’s broken trend line, which is now a resistance. In addition, the test point coincided with level 0.8984, which represents the beginning of the horizontal resistance area.

Taking into account the price behavior described above, two scenarios are considered. One of them assumes a return to declines. However, I expect this only after closing the quotations below the last low, which is located at 0.8905. Then the supply side can again aim support at 0.8750 / 60.

The second scenario is to effectively break the resistance zone, where quotes would have to rise dynamically above 0.9025, which could lead to further gains.

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