EUR/GBP into overbought daily RSI

By FXStreet FXStreet (Guatemala) – EUR/GBP has spiked and maintains a spot on the 0.77 handle with sterling sold off heavily, despite earlier CPI readings in the green vs expectations.

The move comes in an acceleration of the recover from below the key resistance of 0.7555/75 just above the 200 sma on the hourly chart below the support of the 100 sma at 0.7606 on the same time frames. On the daily chart, the RSI is entering overbought readings on RSI and should allow for some consolidation.

EUR/GBP levels

Technically, Karen Jones, chief analyst at Commerzbank explained that the base 0.7492-0.6937 suggests an upside measured target to approx 0.8030/50. “However the 0.7762 2012 low is likely to offer formidable resistance on route. We note the TD perfected set up on the daily chart and would allow for a dip back towards the 0.7492, the October high.”
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Source:: FX Street