EURGBP (0.8777): The EURGBP fell to a 5-month low yesterday, but price action managed to recover by the end of the day. The decline below 0.8750 signals a retest of the familiar support level and indicates a short-term bounce to the upside. On the 4-hour chart, EURGBP will need to rise above 0.8778 in order for theprice to test the next resistance level at 0.8857 – 0.8867 level. We expect the currency pair to maintain this short-term range in the near term. Further gains can be expected only on a breakout to the upside above this resistance level. To the downside, in the event of a bearish close below the support level of 0.8750, the currency pair could resume the bearish trend.
