Three days of indecisive trading in EUR/GBP ended with fresh selling pressure yesterday. The resulting decline took the cross to with 11-pips of the 2012 low and comfortably through the lower end of the declining daily Keltner channel. However, the lows were not maintained as profit taking developed and more than half of the initial downside was regained into the close.
While the underlying trend is unaltered there is scope for a stronger rebound and so, temporarily,we look for the upside to extend over the next few days targeting .7830 or even .7856.
