The EUR/GBP is at an interesting juncture. I've been bearish on this pair for the last few months as the macro data from the UK has been relatively stronger in comparison to the Euro-zone. But while macro data is good for understanding the underlying fundamentals of an economy and in the long-term has a sway over currencies, in the shorter to medium term, the forces at play - positioning, bank and capital flows, technical traders, etc - can push currencies any which way. With the EUR/GBP, while it's not shown in this chart has been seen a 2-month downtrend, that may be at the point of exhaustion, and therefore in need of a retracement. Well, we've already seen a 140-pip rally in this week's trading and in the 4-hour time-frame come to an important level here at 0.8460.That resistance level is both a horizontal pivot from the start of last week, as well as the 200-ems. It can also be considered the neck-line for a 4-week double bottom pattern. Therefore, a pop above this level may mean some further upside is at hand, though the 0.85 handle is another level where supply/selling may come in. A measured move of the double bottom would target 0.8580.Now, the RSI and Stoch do show overbought conditions, and therefore, if we look at the medium term (2 month) donw-trend as the dominant one, we could be setting up for a good risk to reward ratio for a sell, IF the resistance level holds, or we break above it, but then quickly fall back into the range we've established over the last 4-weeks (the double top patter may just be a trading range instead). We may have to wait till next week to see where this pair goes as well as get a sense of why the GBP has been sold off the 2nd half of this week. I'll let price action and the response to this 0.8460 level give me clues as to whats next - a return to the downtrend, or a larger retracement/double-top pattern to the topside. - Nick