EUR/GBP 4H Chart: Broadening Rising Wedge

The Euro has got a good opportunity to surge as high as 0.805 against the Pound Sterling. We assume that the cross should use the 200-period SMA as a reliable support to commence a bullish rebound. This line, placed at 0.7780, is backed by shorter-term moving averages on the 55 and 100-period time frames. Daily and weekly technical studies provide an aggregate positive signal for EUR/GBP, and the SWFX market is quite overcrowded with the bears (73%). A near-term goal is the first weekly resistance at 0.7888. Nevertheless, a real bullish ability to trade within the present upward-sloping channel will be tested at the February high of 0.7929, followed by the first monthly supply level and weekly R2 at 0.7988.