EURGBP in Depth

The pair continues to rush to the downside according to our previously proposed analysis on June 18. The pair retested the previously breached neckline at 0.8400 for the bearish pattern shown above over daily basis, rushing south to breach 76.4% Fibonacci correction with daily closing confirming the bearish short and medium term trend.

We can notice that the downside channel constructing the current downside move as the pair reached the support level alongside momentum indicators that entered oversold areas, which might drive the pair higher to retest the aforesaid breached correction level which turned into resistance at 0.8190 before resuming the downside move.
Accordingly, we expect volatility and fluctuations to retest the breached level before extending the downside move over short and medium term basis towards the main target around 0.7690.
Note that breaching 0.8190 might delay the proposed downside targets leading the pair towards 0.8400 and might extend towards 0.8500, where the latter must remain intact to preserve the current short term bearishness.

By: Yasir Mubarak
Senior Technical Analyst