EURGBP extends steep upleg from 0.8616 trough into sixth straight day and hit the highest in more than five months on Friday.
Larger uptrend from 0.8492 (2023 low, posted on Aug 23) remains fully in play for the second consecutive month and received fresh support from much weaker than expected UK retail sales in September.
The rally cracked strong technical barrier at 0.8735 (50% retracement of 0.8978/0.8492) but faced headwinds as daily studies are overbought and profit-taking at the end of the week after strong rally in past few sessions may sideline bulls for consolidation.
The pair is on track for solid weekly gains, suggesting that bulls hold grip, with narrow consolidation to be ideally contained by former top of Sep 26 / 200DMA (0.8705 / 0.8695) to keep near-term bulls intact for firm break of 0.8735 pivot and acceleration towards 0.8800 zone (weekly Ichimoku cloud which is thickening after this week’s twist.
Caution on extended dips and close below 0.8678 (broken Fibo 38.2% / daily Tenkan-sen) which would dent bullish structure and make the downside more vulnerable.
Res: 0.8735; 0.8792; 0.8808; 0.8863.
Sup: 0.8705; 0.8695; 0.8678; 0.8662.
