The EUR/GBP pair has been trending downwards since the 6th of November 2015, with the bears leading the price from as high as 0.7196 to as low as 0.7066.
During the course of the session on Monday, the pair rose up to 0.7153 to subsequently fall to 0.7108, before consolidating between the levels of 0.7117 and 0.7106. Today, the pair bounced up to 0.7127 to then pull back down to 0.7066. Taking into consideration that there is significant support below that level, the pair could attempt a retracement to the upside. In the event that the buyers manage to push the price to break above 0.7177, the pair could escalate up to 0.7132 and 0.7147 in extension.
Conversely, in the scenario where the sellers keep pressing lower and the pair breaks below the lower level of the candlestick, the price could decelerate down to 0.7041.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.