EURGBP - Temporary setback to deepen
|The early part of Monday was dominated by investor buying. This took EURGBP to within 7 pips of the August high at .8725 target before profit taking was attracted. The resulting setback was not extensive and prices remained near to the top of a rising Keltner channel but the move, coupled with the overbought situation, does leave intraday signals for sentiment mildly negative going into this morning.
So I believe this temporary setback is likely to be incomplete and am looking for levels near .8700 to find fresh profit takers. The downside has scope to .8646 and .8619 while only above .8725 would indicate that the underlying tone is reasserting earlier than I current assess.
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