The EUR/GBP slip to a low of 0.8586, its lowest level since 5 April. There is some support around 0.8580, but the 5 April low of 0.8557 will be a crucial level to mark for any near-term drop in the pair.
Below this, the EUR/GBP can find further support around 0.8540 before we move towards a test of 0.8500-10 levels.
On the 4 hour timeframe, it seems like we’re going to have a ‘Flag’ in the coming hours. If this pattern validates, bears are probably going to test the following support zone at 0.8590 - 0.8574.
The subsequent pullback from these levels could be a starting point for an upward correction towards the nearest resistance at 0.8616 and the Moving Averages.
R3: 0.8702
R2: 0.8672
R1: 0.866
Key Trading Level: 0.8641
S1: 0.8629
S2: 0.861
S3: 0.8579
Consider staying bullish above 0.8585 with a target of 0.861 (23.6% Fibo level) and 0.86107 (38.2% Fibo Level) today. All the best!
