EUR/GBP may fall 11 - 17 pips

Our pivot point stands at 0.8450.

Our preference

The downside prevails as long as 0.8450 is resistance.

Alternative scenario

Above 0.8450, look for 0.8459 and 0.8465.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (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 0.8454 and 0.8453). Finally, the EUR/GBP has penetrated its lower Bollinger band (0.8438).

Supports and resistances

0.8465 **

0.8459 *

0.8450 **

0.8447

0.8433 last

0.8422

0.8416 **

0.8411 *

0.8406 **

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