EURGBP-Continued strength saw the cross rallying strongly on Tuesday and increasing risk of a move higher towards its Jun 20'10 high at 0.8384. This development is coming on the back of a corrective recovery started from the 0.8066 level, its 2010 low.
Above the 0.8384 level should push EURGBP further higher towards its May 06/27'10 highs at 0.8421/26 where a reversal of roles is expected to turn the cross lower again. Its daily stochasticsis bullish and pointing higher suggesting further strength. On the downside, a clearance of the 0.8066 level, its 2010 low is required to halt its current recovery and bring the resumption of its medium term weakness towards its psycho level at 0.8000 and then the 0.7840 level, its Nov 02'09 low.