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EUR/GBP - ST Consolidation Resistance Broken

Yesterday, I mentioned that after the BoE monetary policy statement, traders defended  EUR/GBP's recent consolidation support around 0.7240. I noted that a break above 0.73 and a falling speedline should open up the 0.74 consolidation resistance area, and this is probably happening now.

EUR/GBP 4H Chart 9/11

(click to enlarge)

Note that now 1) price is above the 200-, 100-, and 50-period simple moving averages (SMAs) and 2) the RSI held mostly above 40, which reflects maintenance of the prevailing bullish momentum.

This means that the bullish outlook does not have to be limited to the 0.74 high. IF the prevailing trend continues, the EUR/GBP should at least test the multi-month consolidation high around 0.7475, maybe up to the 0.75 psychological level. 

Now, if there is any short-term pullback, the 0.73 level should hold as support, and if it does, it would help to convince more traders of the bullish outlook in the short-term.

EUR/GBP Daily Chart 9/11
(click to enlarge)