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EUR/GBP Breaking October's Rising Trendline

In October, EUR/GBP rallied from 0.7764 to 0.8046. This was a multi-month high as seen in the daily chart. There was also a falling trendline just above this area. So with EUR/GBP retreating from 0.8046, the pair respected the bearish technical factors in the daily chart, keeping the pair in at least a medium-term downtrend. 

(EUR/GBP Daily Chart 10/20)

When we look at the 4H chart, we can see that price is also breaking below October's rising trendline. It is returning into the cluster of the 200-, 100-, and 50-period simple moving averages (SMAs). The 4H RSI has pushed below 40, showing loss of October's bullish momentum. These are all signs that the EUR/GBP is still bearish, and may be ready to continue its downtrend.

(EUR/GBP Daily Chart 10/20)

There might be one more key support before the EUR/GBP opens up the downside. The 0.7875-0.7890 area represents a support/resistance area that goes back to July. If price can hold above 0.7875 and return above 0.79, we are likely still in consolidation. A break below 0.7870 however would likely revive the bearish trend and push EUR/GBP towards the 0.7764 low, which is also the 2012-low.