The EUR/GBP has been recovering since finding support at 0.8220, below the 2011 low of 0.8280. The rally was rejected at 0.8370 (0.8364 is 23.6% retracement of 0.8830-0.8220 swing). That rejection resulted in a very strong bearish candle, reflecting the dominance of the bears in this market. However if the high of this bearish candle then gets taken out, we are likely also breaking above a projected channel (or wedge) resistance. This can extend EUR/GBP’s corrective rally toward the 38.2% retracement level at 0.8450. When the RSI reading in the daily chart nears 60, we are likely to find resistance. As far as price, ... (full story)