EUR/GBP Breakout or Clear-out?
Daily and 4H: The market is now testing the 0.9150 area . A break above confirms the breakout above 0.9050, since that previous resistance has held as support. (Refer to Weekly Technical Update 11.27.2009.) Short-term resistance is actually 0.9130, but the confirmation of breaking above 0.9050 is needed is more significant.
By the end of today's session, we should note whether the market can close above 0.9150. If it does, we can consider bullish outlook.
In the daily, we see a swing projection brings us to 0.9600. In a shorter term time frame (4h), we see resistance between 0.9200 and 0.9250. The stochastic in the daily time-frame suggests we are due for a correction.
At the moment, the pair is basically testing the range resistance as well as retracement resistance (50%, 78.6%, 127%), so until the market closes above 0.9150, we still keep the bearish scenario alive.
If the market closes below 0.9130, we may consider today's action as clear-out instead of breakout.