With the cross seen following through higher on the back of its last week corrective gains, the immediate risk is for it to strengthen further towards the 0.7949 level. We expect this level to reverse roles as support thus turning the cross back down. However, if this fails to happen, further bullish offensive could build up towards the 0.8039/93 levels where a back off lower may occur but if broken, further upside pressure should target the 0.8154 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, the alternative scenario will be for EURGBP to return to the 0.7787/66 levels. A cut through here will turn focus to the 0.7700 level. Further down, support lies at the 0.7691 level, its Oct 2008 low and then the 0.7594 level. All in all, the cross remains biased to the downside in the medium term but faces corrective recovery risks nearer term.

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