Breaking from the triangle after 5 months of movement inside it
In mid-November 2016, EURGBP started a lateral movement within the triangle. In the middle of last week price approached the lower limit of the triangle. It seemed that there was a greater chance of a rebound than a decline (I wrote an analysis of it: EURGBP before the lower triangle test). Supply however proved to be stronger and yesterday managed to break the lower limit of the triangle quickly bringing the price to support test 0.8350.
Key EURGBP behavior on 0.8350 support
Support at 0.8350, which was now reached by EURGBP is key to the direction of medium and long-term price movement. This level protects against falls since July 2016. Possible breakdown not only that it can start a new downward trend, it will also mean breaking out of the neck line of the great Head and Shoulders formation.
In the next few sessions 0.8350 support should not be easily broken. It may be that the upward movement to the lower triangular lower boundary will be first sown, and only then will the supply be able to launch an attack on the key level of almost yearly minimums of the pair.
