EUR/GBP’s break of 0.8760 resistance indicates that rebound from 0.8284 has resumed. Intraday bias is back on the upside. Also, note that the strong break of medium term trend line resistance has some bullish implication. Further rise should be seen to 0.8940 first and break will confirm that whole rally from 0.8067 has resumed too. On the downside, break of 0.8653 is needed to signal short term topping. Otherwise, we’ll stay bullish.
In the bigger picture, the strong break of medium term trend line resistance revives the case that correction from 0.9799 has finished with three waves downside to 0.8607 already. Decisive break of 0.8940 resistance will further affirm this case and should target a retest on 0.9799 high next. On the downside, break of 0.8284 support is now needed to confirm that rebound from 0.8067 is completed. Otherwise, outlook will remain bullish even in case of deep pull back.(ActionFx)