EUR/GBP Breaks Short-term Downtrend

• Daily: The EUR/GBP found support at 0.8150. There was a strong move today that may have to do with end-of-month payments from UK to the Europea Union.
• The overall mode is still bearish and a long-intermediate term trendline is still above, but not too far away, near 0.8340 (50% retracement).
• We may see today’s move get some follow-through, but anticipate resistance near 0.8340 to 0.8380.
• There is a lot of uncertainty near this area, so lower time-frame charts may provide some clues.

• 4H: The 4H chart shows that the RSI is above 60 and about to break 70. The price level also threatens to break the 200SMA.
• A pattern breakout projection targets the 0.8320 area. We saw in the daily chart that the 0.8340 area is the 50% retracement level and may start providing resistance.
• Momentum seems to be bullish right now for the short-term. After a throwback, we should have another swing towards the 0.8380 level (61.8% retracement).
• However, a decline below 0.82 suggests the current correction rally is over.

Fan Yang
Currency Analyst
Commodity Trading Advisor

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