EUR/GBP may fall 16 - 24 pips

Our pivot point stands at 0.8417.

Our preference

The downside prevails as long as 0.8417 is resistance.

Alternative scenario

The upside breakout of 0.8417, would call for 0.8429 and 0.8437.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 0.8416 and 0.8417). Finally, the EUR/GBP is trading below its lower Bollinger band (standing at 0.8405).

Supports and resistances

0.8437 **

0.8429 *

0.8417 **

0.8412

0.8404 last

0.8388

0.8380 **

0.8373 *

0.8365 **

Number of asterisks represents the strength of support and resistance levels.