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EUR/GBP Breaks Below October's Rising Trendline

EUR/GBP rallied from a low on the year of 0.7766 to 0.8046 in October. Then it retreated, respecting a mult-month resistance. The daily chart shows that price has crossed back below the 100-, and 50-day SMAs, which suggests it might be ready for the bearish continuation.

EUR/GBP Daily Chart 10/21

The 4H chart below shows that the decline so far is breaking below October's rising trendline. If price can extend a little further below 0.7870, it would also clear below a key support pivot seen in the daily chart above and would clear the 200-, 100-, and 50-period SMAs in the 4H chart. The 4H RSI is already breaking below 40, which shows loss of October's bullish momentum. If it tags 30, it would further suggest bearish momentum, and add weight to the bearish continuation outlook, which has at least the low on the year of 0.7766 in sight.

EUR/GBP 4H Chart 10/21