EUR/GBP may fall 12 - 16 pips

Our pivot point is at 0.8507.

Our preference

The downside prevails as long as 0.8507 is resistance.

Alternative scenario

The upside breakout of 0.8507, would call for 0.8515 and 0.8520.

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 negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 0.8510 and 0.8513). Finally, the EUR/GBP is trading below its lower Bollinger band (standing at 0.8499).

Supports and resistances

0.8520 **

0.8515 *

0.8507 **

0.8504

0.8498 last

0.8486

0.8482 **

0.8477 *

0.8472 **

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