Nick Nasad
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EUR/GBP Follow-Up: Pair Falls Further After Breach of Support

To follow up our look at the EUR/GBP from yesterday, the pair has seen the bearish followthrough that I had anticipated.

  • When we last looked at this pair, it had just pierced the 0.8275 support.
  • Now, it has managed to retest that old support as resistance - a good sign for further bearish action.
  • With the ECB rate decision and Draghi press conference, the EUR weakened, which meant the pair has not put in a new low near 0.8225.
  • This is a constructive break with the pair now setting up a new 50 pip range.
  • The idea here then would be to short the pair whenever it rallies, preferably to the newly established resistance level.