EURGBP continues facing strong resistance at 100-day SMA region, currently near 0.8030-35 area.
Looking at the Scottish uncertainty, there seems strong possibilities of the pair conquering this resistance and witness some sharp up-move towards 200-day SMA strong resistance near 0.8150-60 zone.
The pair confirmed a strong closing well above the top of the previous session but also well above the resistance of the inside day at 0,7830 suggesting further possible strength, especially in case of a closing tonight above 0,7860!! The indicators of the daily chart are still well negative but those of the s/t charts are still all positive this morning suggesting further strength. The move up failed yet to form divergences but brought the RSI above the 70% level; instead we have overbought conditions and a potential negative reversal situation with a possible target a 0,7669!! We sold yesterday the position at 0,7940, just below the resistance line that the cross broke on the upside and now is support at 0,7835!!
It is very tempting to sell right now but I plan to wait for Frankfurt open and see where price is. Optimal shorting zone would be around 0.7887/91 although arguments could be made for shorting @ 0.7870 but then your stop loss would be wider and position size smaller to augment for the increased risk. I like 0.7774 area as a take profit target.
Even if the EURGBP breaks 0.7860, the pair is unlikely to rally towards 0.7950 until it breaks 0.7890 resistance levels. Moreover, weaker Euro continue supporting the short trades.