Forex Technical Update
The EUR/GBP continues to fall after testing the 200 period simple moving average seen in the 4H chart, and with heavy bearish candles, the latest of which is breaking below a rising support. The next support pivot is near 0.8520. Below that we are looking at the 0.8485 low. The weekly chart shows the market anchored in a slightly bearish channel, so support might slip even lower, toward 0.8450. The 0.8660 pivot reflected the middle of the recent medium-term range-bound action, and a failure to break above reflects a short-term bearish market. If this short-term bearish market extends, we would be following through with a break below a key trendline projected back to June 2010. The break below the November low of 0.8485 also breaks below the 200 Week SMA, a major bearish signal opening up the 0.8285 pivot.