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  • Stronger pound across the board favoured an extension of the EUR/GBP correction.
  • Euro failed to break 0.9150 and to remain above 0.9130, leaving the cross vulnerable.

The EUR/GBP is falling on Tuesday after rising during five consecutive days. It is correcting lower. The trend continues to point to the upside, but the momentum eased, and there are signs of exhaustion.

The euro needs to post a daily close clearly above 0.9130/40 to clear the way to more gains and to a test of monthly highs and the 0.9200 area.

If the corrections extend, the critical level on is seen around the 0.9000/20 band, the confluence of a strong horizontal level, an uptrend line and the 50-day moving average. A break lower would point to more losses, with the next support at 0.8940.

EUR/GBP daily chart