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EUR/GBP Trying to Form a Price Bottom after Positive German Data

EUR/GBP is in a 1-year old bearish trend that is still running and intact. However, we have seen the pair try to form a price bottom over this past couple of weeks. Perhaps a bullish correction is in order.

(eurgbp 4h chart, 6/25)

We had some positive German-data during the 6/25 European session. Consumer climate for July is improving at levels not seen since before the financial meltdown of 2007/2008. The German data helped EUR show resilience, though the gains were limited so far. 


(eurgbp Daily chart, 6/25)

Now that there is a break above 0.8025, the next clue would be support at 0.80. If 0.80 can provide support, traders can gain confidence in buying EUR/GBP against the 1-year old bear-trend. In this bullish scenario, the 0.8060-65 pivot will be the first key challenge. It might be reinforced by a falling trendline seen in the daily chart. A break above 0.8065 will be needed to open up the 0.8150 pivot area.