EURGBP made a small recovery today after it came close yesterday to retracing 100% of the May-June upleg from 0.7054 to 0.7388. The pair has been trading in a range since bottoming from its November 2014 – March 2015 downtrend at 0.7013 on March 11. If prices drop below the support level provided by the 100% Fibonacci retracement level at 0.7054, this will bring it closer to breaking below the range bottom and to new multi-year lows.
The recent double top reversal has pushed the tenkan-sen line back below the kijun-sen line, suggesting a bearish outlook in the medium term. The RSI and MACD indicators are also signalling downside bias. Any attempts for a rebound will be met with resistance at 61.8% of the Fibonacci retracement level around 0.7182.
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