EUR/GBP was rallying in October but has retreated from a key resistance last week. It ended the week at a key juncture, and is now breaking below this key support area. Let’s take a look at the charts.
After rally from 0.7766 to 0.8046, EUR/GBP encountered a multi-month resistance, from which it retreated. It has since come down to a key support area, and price action during the 8/21 European session is breaking below October’s rising trendline. A little further decline with the 4H RSI dropping below 40 preferably to 30 would signal revival of the prevailing downtrend, putting pressure back to the 0.7766 low on the year.
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