4 weeks of consolidation in EUR/GBP ended sharply last week. Selling interest below the key 13 day moving average accelerated as the week progressed and net losses of more than 130-pips were the most negative performance since February.
76% of the 2012-13 rise has now been corrected and although there is scope for an early reactive move, the ‘hugging’ of the lower end of both daily & weekly Keltner channels indicates the trend and there is potential for a move towards 0.7886.
