EUR/GBP Breaks Short-term Downtrend

Daily: The EUR/GBP found support at 0.8150. There was a strong move today that may have to do with end-of-month payments from UK to the Europea Union.

The overall mode is still bearish and a long-intermediate term trendline is still above, but not too far away, near 0.8340 (50% retracement).

We may see today's move get some follow-through, but anticipate resistance near 0.8340 to 0.8380.

There is a lot of uncertainty near this area, so lower time-frame charts may provide some clues.

4H: The 4H chart shows that the RSI is above 60 and about to break 70. The price level also threatens to break the 200SMA.

A pattern breakout projection targets the 0.8320 area. We saw in the daily chart that the 0.8340 area is the 50% retracement level and may start providing resistance.

Momentum seems to be bullish right now for the short-term. After a throwback, we should have another swing towards the 0.8380 level (61.8% retracement).

However, a decline below 0.82 suggests the current correction rally is over.