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EUR/GBP Rolling Over; Eyeing 0.7270

The EUR/GBP has been trading in a key consolidation resistance area as we can see in the daily chart. 

EUR/GBP Daily Chart 10/7

(click to enlarge)

Today's price action so far suggests that bears have won the battle at the resistance area .However, this is a very short-term outlook before a key support around 0.7270. This will be in the middle of a previous consolidation area. There will also be a rising trendline and the 50-day simple moving average. This area holding as support would be a bullish signal that will pin the EUR/GBP against the noted consolidation resistance up to 0.7480. If it breaks, EUR/GBP is likely still in the sideways mode it has been in since March. Then, the next support will be around 0.7150-0.72, but if price can make it here, the bullish implication is weak, and there would be just as much downside risk back towards the 0.70 psychological level.

There is not much of a trade here in my opinion except to short in the consolidation resistance area between 0.74 and 0.7480, or support area, which is below 0.70. In the middle of this range, it is a crap shoot.