EUR/GBP: detailed illustration and interpretation of the chart

As it can be inferred from the DAILY timeframe graph of EUR/GBP, initially, the price has heavily bounced off the 0.872 area of support and made its way to the upside. Afterwards, we witnessed the ability of the price to break above the 0.877 - 0.878 key region and massively impulse to the upside. Then, we witnessed a correctional phase as the price pulled back and reached the area of support highlighted on the graph (the previously penetrated key region) aligning with the 0.618 Fibonacci retracement level.

Now that the price has formed a nice bottom formation on the local area of support, we are positive about the fact that the price will continue rising and potentially reach the target that we have mapped on the graphic.