The EUR/GBP pair has been under selling pressures, since the 6th of November 2015, with the bears leading the price from as high as 0.7196 to as low as 0.7041.
During the course of the day on Thursday the pair fell, but found enough support at 0.7045 to bounce back up and form a hammer. Taking into consideration that the hammer is considered a bullish formation, the price could go higher. In the event that the price manages to break above the level of 0.7118, the pair could escalate up to 0.7137 and 0.7196 in extension.
Conversely, in the scenario where the sellers resume their downward activity and the price breaks below 0.7041, the pair could decelerate down to 0.6944.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.