EURGBP – In our medium term report (yesterday) we talked about the possibility of a continued corrective trend towards .8550, 38.2% pullback level of the last selloff (from .8793-.8411). A full AB=CD formation is located at .8544. An overnight high of .8559 has been posted and sellers have now emerged. Although a clear break of .8532 is needed to confirm the negative momentum, the bias is assessed to be bearish going into today. The profit targets are .8510, .8479 and towards .8435.
The risk, however, would be with buying through a stop of .8560, a break of the overnight high trade.