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EUR/GBP - Key Resistance Holds; Tests Short-term Support

The EUR/GBP has been rally since August and as it approached the multi-month consolidation high around 0.7475 recently, I mentioned monitoring this area for resistance. Being that the prevailing trend before the consolidation was bearish, we had more reasons to believe in a dip. 

EUR/GBP Daily Chart 10/16
(click to enlarge)

In the daily chart you can also see that price and the RSI showed a bearish divergence .

Now, the slide has brought EUR/GBP to a critical short-term support around 0.7350. There is a combination of a support pivot and a rising trendline here .A break below can open up 0.72, which to me is the final line of defense for bulls. 

Your position is like your army, and at these two levels, you might want to scale back the size. By the time price is at 0.72, I will have 1/3 of a position left. Because a break below 0.72 signals further downside, I would consider adding another 1/3 if there is a pullback. Then, the bearish target would be 0.70.