Last week we saw EUR/GBP hit a very signifcant level at the 0.90326 where it found resistance. Sellers have somewhat taking a liking for this level as there are several times priced has been rejected there. Last Thursday was no expection as a long-wicked bearsish candlestick was printed off this level on the Daily chart ( see fig 1).
This bearishness was most likely instilled by the report that the EU, factoring the hassles involved in a ‘Hard Brexit’ might consider the option of extending the membership of Britain for another 2 years. Price has further dipped lower consolidating a bearish momentum.
Fig 1. EUR/GBP Daily (D1) Chart
Current trading bias would be going short looking to take profit at the 0.8800 evisaged psychological zone of support whilst placing stop at the 0.89352 level for 1:1 risk reward ratio [see H1 chart]. Furtherdown for 1:2 risk reward, sellers can look to take profit at the 0.8750 support zone.
Fig 2. EUR/GBP Hourly (H1) Chart
Alternatively, a break above the 0.8925 zone would open room for a bullish continuation.