EUR/GBP More Downside In View
EUR/GBP has increased a little today but this could be only a temporary one. The price action has shown some bearish signals lately signaling further drop. The Pound could resume its appreciation as the UK’s manufacturing and services data have come in better than expected.
Still, we need confirmation that the pair will extend its downside movement. Technically, the price is located in the seller’s territory, so it could drop anytime again despite the current rebound.
EUR/GBP Under Pressure
You can notice that EUR/GBP has retested the median line (ml) of the descending pitchfork and now has escaped from the minor ascending pitchfork’s body indicating once again that it could resume its downtrend.
The major and critical support remains at the 0.8861 level, so only a bearish closure under this obstacle, a new lower low, will really confirm a deeper drop towards the lower median line (LML).
- EUR/GBP Trading Tips
Dropping and stabilizing under the 0.8861 static support, the former low could activate a selling opportunity.
The next downside target is seen at the S3 (0.8810) level. Though, a new lower low could send the rate towards the lower median line (LML).
The material has been provided by InstaForex Company – www.instaforex.com