With bearish signals for EUR/GBP on the week confirmed, Thursday’s outlook highlighted the potential for temporary profit taking buying with the reciprocal trading exactly at 1.2700 (.7872). However, contrary to a call to sell the rally, the bounce was stronger than anticipated, sentiment improving by almost ½ Big Fig on the day.
While this is positive, the gains are most likely temporary profit taking and they have stalled from close to the 13 day average rate. However, in the absence of a sell signal, the outlook for Friday is temporarily bullish above a stop loss at .7915.
Targets are to .7936/41, yesterday’s high, .7950 and .7982, last week’s top.
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