The marginal gains seen in the EUR/GBP at press time could be short-lived, as the bear flag breakdown confirmed yesterday on the 4-hour chart is still valid.
4-hour chart
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As seen above, the pair fell to lows near 0.8520 in the European trading hours yesterday, confirming a bear flag breakdown – a bearish continuation pattern, which usually accelerates the preceding bearish move.
The pair, therefore, could fall to 0.8366 (target as per the measured move method). On the way lower, the pair may find support at 0.8472 (support of the March 13 low).
The bearish view would be invalidated if the spot re-enters the flag.
Trend: Bearish
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