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EUR/GBP

EUR/GBP

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.

EUR/GBP

Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.