Looks to test key resistance target
The EURGBP has surged on the back of the BOE stimulus measures as well. The pair has moved up toward a key area defined by lows and highs post Brexit. That area comes in at the 0.8484-91 area (see chart below). Look for reluctance against the area on a test with stops on a break above.
Close support now comes in between the 0.8436 adn 0.84508 area. This is the 38.2-50% of the last leg higher after the decision. After the first illiguid spike the price of the EURGBP corrected to 0.8405 (200 bar MA on the 4-hour chart). The price based from there and new buyers took the price higher. IF the buyers love this pair they should love it at 38.2-50% area of that last leg higher. If it goes below, there should be a further corrective move.
