EUR/GBP may fall 11 - 16 pips

0.8420 is our pivot point.

Our preference

The downside prevails as long as 0.8420 is resistance.

Alternative scenario

The upside breakout of 0.8420, would call for 0.8429 and 0.8435.

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 stands below its 20 and 50 period moving average (respectively at 0.8419 and 0.8427). Finally, the EUR/GBP has penetrated its lower Bollinger band (0.8412).

Supports and resistances

0.8435 **

0.8429 *

0.8420 **

0.8417

0.8408 last

0.8397

0.8392 **

0.8386 *

0.8381 **

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