EURGBP moved dynamically north starting from key support at 0.8330. As you can see on the chart below gains were recently stopped at key resistance around 0.8858.
Yesterday aforementioned resistance was tested again. Price falsely breached last high, but the daily closure took place significantly below the area of resistance. In addition yesterday’s price action engulfs trade of the previous day, which indicates bearish engulfing formation.
Currently it is quite important how price action will be held during the next session. It is clear that today EURGBP is under the trend line. If the closure will take place under it or preferably under local support close to 0.8761, we can expect a major correction. The nearest target may be around support at 0.8640.
