EURGBP - Short covering

EURGBP (1H) - short term bullish bias

The euro seems to be bottoming out from last May's lows of 0.8500. The RSI indicator has risen back from the over-sold territory while the price broke above the resistance-like moving averages. As shorts scrambled to cover their positions we would expect more buying interests to push the price higher. 0.8518 has been established as a major support level after the overnight consolidation, if it holds the rally could propel the euro toward 0.8560.

Key support: 0.8518
Key resistance: 0.8560