The background to EUR/GBPis dominated by the aggressive decline 2 weeks ago. The market has attempted minor profit taking since then but overall has been caught within a broad range.
The lack of downside follow through is a concern of course, but 3 factors keep the focus on the downside in our assessment:
- Rallies are capped by a Marabuzo line formed Jun 12th
- The trend defining 13 day avg is acting as resistance – and hasn’t been broken for more than 2 months.
- The daily Keltner channel remains trending negatively.
So there is potential for 0.7989 then this month’s 0.7959 low to be targeted in the coming days. 