EUR/GBP Price Forecast: In a near-term bullish bias towards 0.8680

• The Euro extends its recovery against the British Pound amid an increasing bullish momentum.
• ECB Lagarde's upbeat comments in Jackson Hole have provided some support to the Euro.
• EUR/GBP is on a positive trend, aiming for 0.8680 ahead of 0.8710.

The Euro bounced up from the bottom of the last six weeks' trading range near 0.8600 against the British Pound last week, and the pair remains biased higher on Monday, despite a slight daily pullback which, so far, remains contained above 0.8660

The European Central Bank President, Christine Lagarde, showed a confident view about the Eurozone economy at the Jackson Hole Symposium over the weekend. Lagarde highlighted the strong performance of the Eurozone's labour market in the face of an uncertain economic environment, which has provided some support to the Euro.

On Monday, the German IFO Business Climate data posted an unexpected increase, amid a mild improvement in the near-term economic expectations among German firms, although the impact on the Euro has been minimal.

Technical Analysis: Trending higher within range

The EUR/GBP technical picture shows the pair under a renewed bullish momentum after bouncing from the bottom of the last six weeks' trading range, at the 0.8600 area. Technical indicators are pointing higher, with the RSI near 60.00, suggesting scope for further appreciation.

Recent price action suggests that a Gartley harmonic Pattern is in process, with bulls aiming for the August 5 support area, near 0.8680 and the 61.8% Fibonacci retracement of the early August drop, at 0.8685. Further up, the 78.6% Fibonacci level of the same bearish cycle, right above 0.8700, is a common target for corrections.

To the downside, immediate support is at the 0.8640-0.8650 area, where bears were contained on August 21 and 22, ahead of the key support area below 0.8595 and 0.8610. Below here, bears would be back in charge, aiming for the July 1 low, at 0.8555.