EUR-GBP: Corrective Recovery Shapes Up

EUR-GBP: Immediate risk for EUR-GBP remains higher, having followed through to the upside today after its marginal gain on Monday. A further corrective up move now looks to be seen toward the 0.9060 level, its Nov. 3 high, where a break will accelerate further upside toward its Oct. 27 high at 0.9134. A loss of that level will pave the way for a run at 0.9239. Unless the latter level is decisively taken out, we retain our nearer-term bearish downside outlook on the pair.

On the downside, its Nov. 9 low at 0.8896 comes in as the next suppor,t with an invalidation of there opening the door for further declines toward the 0.8837 level. That would mark its Sept. 27 high and possibly lower, targeting the July 13 high at 0.8698. On the whole, with corrective upside triggered, immediate risk remains higher.