• EURGBP reversed from support area
• Likely to rise to resistance level 0.8600
EURGBP currency pair recently reversed up with the daily candlesticks reversal pattern Bullish Engulfing from the support zone located between the pivotal support level 0.8535 (which has been reversing the price from February, as can be seen form the daily EURGBP chart below) and the lower daily Bollinger Band. The upward reversal from this support area stopped the previous impulse waves (iii) and 3 of wave (3) from the end of May.
Given the strength of the aforementioned support zone, bearish sterling sentiment seen across the FX markets today – EURGBP currency pair can be expected to rise further toward the next resistance level 0.8600 (top of the previous corrective wave (ii)).