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EUR/GBP Breaks Down Last Week's Range, 2014 Lows in Sight

Both the EUR and GBP rallied sharply against USD so far this week. However, GBP shined brighter and the EUR/GBP fell. As we begin the 4/8 US session, the EUR/GBP has broken below 0.8245, last week's range low. 


(EUR/GBP 4h chart, 4/8)

This dip extends a bearish run that started from the 0.8399 March high. The run to get to that high was a bullish signal that introduced a possible bullish reversal since it broke above a falling trendline resistance.

However as the market continues onward below 61.8% retracement, EUR/GBP looks poised to retest some of 2014's lows. A conservative bearish outlook would be toward the 0.8185-90 area, which is a common support. 

Bullish scenario: If the current break down is false, then a break back above 0.8285 should introduce a bullish outlook. Otherwise, 2014 lows, here we go.