EUR/GBP: Drop Could Extend

Technical Reports

Trading tone is neutral, as the cross recovered after falling to 0.8810. Following pivot points include: (S1) 0.8851; (P) 0.8889; (R1) 0.8916.

Overcoming of resistance 0.8939 will confirm completion of the fall from 0.9098 and turn forecast bullish for this resistance. Trading below below 0.8810 will widen the drop from 0.8931 to retest low 0.8655.

The cross remains inside of a long term diapason pattern from 0.9304. Hitting of resistance 0.8939 will indicate that it’s in a medium term rising leg for 0.9098 and above. As another fall is not excluded, downside should be contained by support zone 0.8620/55.