On the weekly chart the price has reached important resistance level of 0.7820 (ЕМА200 and Fibonacci retracement of 50%). The last wave of decline from the highs of August 2013 to the lows of 2015 at the level of 0.6900 has amounted over 1800 points.
EUR/GBP has regained half of the losses. In terms of trading strategy involving Fibonacci levels, the gap of 38.2% - 50.0% is the most critical for determining further movement direction. Usually, the rise above Fibonacci level 50% indicates reversal of the downtrend. However, the pair EUR/USD is overbought. Although the GBP/USD was able to adjust in February, it is still overbought and is now in the area of lows of 2002, 2009 and 2010.
The cross-pair EUR/GBP can undergo long-term downward correction until 10 March before ECB meeting devoted to monetary policy.
On the daily chart the indicators OsMA and Stochastic give signals for short positions. On the weekly chart Stochastic is reversing towards sell positions as well. On 4-hour chart the indicators are in favour of sellers.
Breakdown of support level of 0.7730 (ЕМА50 on 4-hour chart) and 0.7700 (ЕМА144 on weekly chart) can sent the pair EUR/GBP to support level of 0.7610 (Fibonacci 38.2%).
Consolidation of the price below this level will trigger the decline to support levels of 0.7375 (ЕМА200, ЕМА144 on the daily chart) and 0.7350 (Fibonacci 23.6%).
In this situation alternative scenario of the rise in the pair above 0.7820 is unlikely.
Support levels: 0.7730, 0.7700, 0.7610, 0.7575, 0.7525, 0.7375 and 0.7350.
Resistance levels: 0.7820 and 0.7895.
Sell Stop 0.7720.
Take-Profit 0.7700, 0.7610, 0.7575, 0.7525, 0.7375, 0.7350
Buy Stop 0.7830.
Take-Profit 0.7890, 0.7925, 0.8000