- After making a spike to 0.9070 on Monday, EUR/GBP reversed sharply.
- Set up favors more losses ahead if cross holds under 0.9000.
The EUR/GBP broke below 0.9000 and also under an uptrend line, leaving the euro vulnerable to more losses. So far, it bottomed at 0.8965. and then rebounded. As long as it stays below 0.9000 the bias would favor more losses.
The area around 0.8955 is the immediate support followed by 0.8920. The EUR/GBP set up an imperfect head and shoulders formation that if confirmed, would target 0.8850.
A recovery back above 0.9000 should alleviate the bearish pressure. If EUR/GBP surpasses the 0.9060/70 area, the euro could extend gains for a test of 0.9100.
EUR/GBP 4-hour chart
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