EUR/GBP Bounced off of 0.8580

EUR/GBP could not break below the support at 0.8580 after all and after a day or so of testing that support level, consolidating sideways and forming multiple candlesticks on the four-hour time-frame that were a signal that the pair would bounce off of it – namely spinning tops and hanging man candlesticks – it did bounce off the aforementioned support level. EUR/GBP is currently testing the resistance at 0.8700 and a possible breakout above that level will likely lead to a further move to the upside towards the next resistance at 0.8760. If the move to the upside continues next target will be around 0.8820, which coincides with the (MA)89 indicator on the four-hour time-frame.