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  • EUR/GBP is headed towards a test of the VPC if resistance holds.
  • Bulls need to overcome the 0.9150 resistance.

EUR/GBP is in a technical bearish phase and has seen a strong rejection of familiar monthly resistance in the past week.

At this juncture, while there may be scope for a move to the upside, the Volume Point of Control (VPC) is located at a weekly structure with the confluence of a 61.8% Fibonacci retracement level and 50-day moving average.

The confluence of this zone combined with the monthly supply rejecting the price opens prospects of a continuation to the downside.

Monthly chart

Weekly chart

Daily chart

As illustrated, the monthly supply zone is strong and should the current resistance hold, then it is probable that the VPC will be retested at 0.9045. 

Demand could drive prices higher again from there to retest the overhead resistance structure.

Such a move could possibly equate to a downside continuation at which point will open the chances of an upside test of the VPC.