EURGBP: Maintains Its Recovery Tone.
EURGBP- The cross remains on corrective upside offensive following a halt in declines at the 0.8720 level on Jun 16’2011 low.
With that said, EURGBP is expected to push further higher towards the 0.8920 level, its Jun 10’2011 high with a loss there targeting the 0.8976 level, its Jun 08’2011. We may see a price hesitation on an initial test of that level but if it is taken out, further strength will develop towards the 0.8843 level, its Jun 14’2011 high. On the other hand, the risk to our analysis will be a return below the 0.8720 level, its Jun 16’2011 low. This will create scope for more declines towards the 0.8610 level, its May 26’2011 low. And possibly lower.