EURGBP bullish move may stall around 8850 area

As expected (and mentioned in previous posts) EURGBP has experienced a large bullish move over the past few days caused by stagnant EURUSD and bearish GBPUSD. However, be aware of a major trendline resistance coming at around 8850. Williams %R as well as stochastics show significantly overbought levels. It is true that currencies, especially EURGBP, tend to stay overbought or oversold for many days but in this time around the price has been overbought for over a week. Pullback may therefore be due. Tomorrow we are getting German IFO numbers. If these numbers surprise to the upside it may propel EURGBP to the aforementioned 8850 level easily as IFO has always been a big EUR mover. I'd recommend keeping relatively tight stops to protect gains or placing limit orders at around the 8850 level as stalling/pullback is expected. Long term targets are much higher but for shorter/medium term trades, taking profit ahead of this major resistance point makes sense.

Good trades.