EURGBP continues to decline and the bearish bias is strengthening after the fall below the daily Ichimoku cloud.
Technical indicators are giving bearish signals – the tenkan-sen crossed below the kijun-sen line and the market is below the 200-day moving average. Also, the RSI is trending downwards and is in bearish territory below 50.
EURGBP has retraced more than 61.8% of the upleg from 0.6935 to 0.7492 and there is scope to reach the 76.4% Fibonacci. These two levels correspond to 0.7147 and 0.7053 respectively. A deeper decline would see a retest of the 0.6935 low again. Meanwhile, to the upside, the bottom of the cloud will act as resistance at 0.7178.
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