Euro/pound has made some nice gains in recent weeks and now entertains and interesting pattern. Here is the view from SocGen:
Here is their view, courtesy of eFXnews:
EUR/GBP is undergoing a steady recovery after the pair has earlier confirmed bullish patterns such as a double bottom and an inverted H&S which ascertained the ongoing rebound, notes SocGen.
“The pair is now closing in on the median of a monthly descending channel at 0.79/0.7940. However with monthly RSI breaching above a resistance line, the recovery is likely to persist and 0.79/0.7940 will be just an interim hurdle. 0.7750 is an immediate support while short term down move, if any, should be confined to confirmation level of aforementioned patterns at 0.75/0.7450,†SocGen adds.
“Eventually the rebound is likely to persist towards 0.8070/0.81, projected potential of the double bottom,†SocGen projects.
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