Bounce on the EUR/GBP from the 55 day EMA

The Euro versus the Pound reached the 55 day exponential moving average on Friday, just above the 0.7900 level. Today we have seen that the price is trying to bounce to the upside from that zone. We don’t know for sure if there is going to be a continuation to the upside and a possible visit to the 0.8000 level where we can also see the 200 day exponential moving average (blue line). Therefore, the best thing to do is to wait and see if the pair continues correcting or if it tries to break below the 0.7900 level. If there is a breakdown of the 0.7900 level, then the pair has the road open to reach the 0.7800 level.