Forex Technical Update
The EUR/GBP found resistance at 0.8642 twice and fell below the 0.86 support thereby completing a double top. The market found support at a previous pivot of support near 0.8560 and is stalling. A pullback can be developing. Note the RSI at 40. It had failed to break above 60 after hitting 30, so a return below 40 is reflective of maintenance and return of bearish momentum. This is confirmed when the reading falls back below 30.
A failure to reach back above 0.86 in a pullback shows bearish dominance in the short-term.Then if the market clears below 0.8525, we have a bearish breakout of recent range with 0.8460 and 0.8350 as next levels of support pivots seen in the daily chart.
Draghi and the ECB: The interest rate cut came as a surprise as economists expected a hold, but hey it's a new president so there was that x-factor. After the conference ended however, the Euro is making sharp pullback. Let's see if EUR/GBP can find resistnace near 0.86 to confirm the bearish intent in the short-term.