EURGBP has reached the 0.382 distance of the top to bottom of the Descending triangle and is is testing the triangle peak at around 0.87.
RSI is above 60 strongly indicating higher EURGBP levels are likely. A close above 0.87 will pave the way towards 0.88 as indicated by the two vertical arrows.
However, statistically the move after a Descending triangle break out is often cut short at around the 0.618 ratio i.e., at around 0.8737
To demolish this bullish picture EURGBP needs to close back below the upper falling trend line in the triangle
The Dollar Index has touched the strong resistance at around 105.80.
RSI is showing positive sentiment but there is divergence indicating the uptrend is stretched and a correction is looming.
If the Dollar Index is closing above 105.80 the RSI is closing above its upper falling trendline indicating likely higher Index levels. But if the Index is sliding back and the RSI is closing below its lower rising trendline a correction is most likely unfolding
Strong support at around 104.40. A close below is likely to initiate a larger correction down to the 0.382 retracement at around 103.35
A close below 102.85 will reverse the bullish trend.
Medium-term the Dollar Index is likely to move higher. Weekly RSI has closed above 60 indicating likely higher Index levels.
If the Index is closing above 105.80 is could pave the way top 107.90
