• EURGBP reversed from resistance zone
• Likely to fall to support level 0.8490
EURGBP currency pair recently reversed down from the resistance zone located between the key resistance level 0.8595 (which stopped the previous minor ABC correction (ii) at the start of November) and the upper daily Bollinger Band. The downward reversal from this resistance zone started the active short-term impulse wave (iii).
Given the clear daily downtrend, overbought daily Stochastic and improvement in sterling sentiment as seen across the FX markets today, EURGBP currency pair can be expected to fall further toward the next support level 0.8490 (low of the previous correction (ii)).