EUR/GBP in negative mood – Key level to watch at 0.851
The bulls tried to push the EUR/GBP higher in the past week, but the 0.86 level provided strong resistance. At 0.8531 at the time of writing, the pair kicked off the week in a negative footing. We expect to see some more sideways movement here and a lot of noise before we get a clear direction. The market looks likely to pull back at this point, which would confirm the double top formation on the daily chart. First target for the bears to watch sits at 0.851. A consistent break below that area would open the door for the 0.849 area. In the alternative scenario, we would have to see the upside penetration of 0.86 to get on the long side of the market, but this is hard to imagine at the moment.
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