EURGBP - Weekly Momentum Positive; .8000 beckons

EURGBP posted net gains for the third consecutive week last week. This upside, despite being supported by positive momentum, remains weak with the majority of trading over the last three weeks remaining within the parameters of the preceding sharp decline. Another concern is that the daily Ichimoku Cloud contained last week's price action but although signals are acknowledged as being weak, our call is Cautiously Bullish above .7859. The immediate objective is .7964, last month’s top, with a move beyond that point targeting .8003, a 62 percent recovery of the fall from June’s peak, or even towards .8081, the nine-week high trade.

The risk to this call is a move under .7859, the open from two weeks ago, indicating that the downside is likely to extend further than previously assessed targeting .7833, the two week bottom, or even .7790.