EUR/GBP Bullish Continuation

EUR/GBP: bullish continuation

• Bollinger Bands bullish;
• ADX and DI bullish;
• RSI bullish.

Although the Bollinger Bands indicator narrowed the distance between its borders, signaling lower volatility, the EUR/GBP cross-rate remained in the bullish territory above the middle line. Besides, the rate charted a preliminary breakthrough signal after closing multiple candlesticks above the upper band. A similar pattern is seen on the Relative Strength Index as the oscillator printed a bounce-by-trend pattern, coming off the 50% threshold and heading North after that.     

The ADX and DI indicator adds chances to a bullish continuation as the mainline is rising, and it’s about to cross the zero level from below. This is important evidence that the momentum is getting stronger thus the bulls might add demand for the pair and keep lifting it upwards. The green line is above the red one, which reflects the bullish sentiment.                                                       

Pivot points:

R1: 0.86268 (BB upper line);

R2: 0.87000 (round-figure extension);

S1: 0.85959 (BB middle line);

S2: 0.85648 (BB lower line).