The eurgbp continued in positive tone last week, despite closing on Friday, marginally lower at 0.8134 with a narrow spread down candle. This bullish momentum for the pair was first signalled on 4th October with our trading indicators delivering a conservative entry signal to the long side which has subsequently been confirmed on the 16th October with a grey re-entry signal. Since then the pair has continued steadily higher and the key technical level last week was a break and hold beyond the 0.8100 level which occurred on Wednesday. The pair also received an additional boost last Tuesday following the isolated pivot low.
The trend on the daily chart has remained green throughout the last two weeks, as has the trading indicator, which is giving a strong confirmation of this bullish sentiment. The daily and three day volumes are also confirming this picture with strong buying volume in both time frames.
Finally the 3 day trend is also in strong bullish mood since its transition in early September from white congestion through to green on the three day chart.Looking ahead the next key level for the pair is the high of mid April in the 0.8268 region and if this is breached then expect the current bullish momentum to continue in the medium term.
By Anna Coulling