Overview:
EUR/GBP remains in consolidation mode within Tuesday's 0.8365/0.8425 range, after setting a fresh eleven-month high at 0.8440. Yet in spite of the steepness of the bull wave from the Jan. 3 higher reaction low at 0.8087, corrective EUR weakness is considered limited at this stage, and back-up support lies at 0.8345. EUR bulls have room for further gains above 0.8440 towards the 2012 peak at 0.8504 and 0.8525, post-consolidation.
Preference:
Sell below 0.8425 with targets at 0.836 and 0.8345 in extension.
Support levels:
S1 - 0.836
S2 - 0.8345
S3 - 0.832
Alternative scenario:
Buy above 0.8425. Above 0.8425 look for further upside with 0.844 and 0.8455 as targets.
Resistance levels:
R1 - 0.844
R2 - 0.8455
R3 - 0.848
Technical comment:
The RSI is mixed and calls for caution.