EURGBP: Remains On The Offensive

By Roger Baettig | September 14 2012 8:44 AM

With EURGBP holding firmly above the 0.8000/09 levels, further upside offensive is expected. As long as it holds above the 0.7953/28 levels, further upside gains are likely. We expect a back off lower at the 0.8000/09 levels but if broken, further upside pressure should build up towards the 0.8154 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, a continued bear threats could see the cross face downside pressure towards the 0.7953/28 level. Below here if seen will target the 0.7761 level with a breach aiming at the 0.7700 level. Further down, support lies at the 0.7691 level, its Oct 2008 low. All in all, the cross remains biased to the upside on correction.