EUR/GBP: Break Below Multi-Month Range Could Signal Stronger Bearish Acceleration

Technical analysis of Forex market

The cross accelerated lower on Wednesday and broke below the floor of Oct 2017/Jan 2019 range, to hit the lowest levels since May 2017.

Extension of larger downtrend from 0.9113 (range top) cracked support at 0.8547 (Fibo 76.4% of 0.8312/0.9306 ascend) that opens way towards key supports at 0.8395 (Fibo 38.2% of July 2015 / Oct 2016 0.6924/0.9305 rally) and 0.8370 (rising 200WMA).

Pound’s strong bullish sentiment over fresh Brexit optimism supports scenario, but bears are expected to pause in coming sessions, due to oversold daily studies and expected profit-taking.

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Immediate focus remains at the downside as indicators continue to head south and lack any reversal signal for now.

Res: 0.8564; 0.8596; 0.8617; 0.8669
Sup: 0.8531; 0.8479; 0.8395; 0.8370

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