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Alan Collins from 3cAnalysis is looking at EURGBP and the positive sentiment that, he believes, dominates the background. From a midterm perspective the weekly Bullish Morningstar pattern that was formed three weeks ago is the key feature and since then profit taking setbacks have been very limited and unable to negate that signal.

Monday’s setback was the latest attempt to reject prices above 0.8000 according to Alan. That decline proved temporary and limited, with buying interest returning yesterday from a Marabuzo line which was created by last Wednesday’s powerful gains.

With a positive Keltner channel and the key thirteen day moving average supporting this, Collins looks for gains to extend in the coming days with medium term targets at 0.8050 and 0.8077. Only a daily close below 0.7979 negates this scenario.