- EURGBP broke support area
- Likely to fall to 0.8870
EURGBP recently broke sharply through the combined support area lying at the intersection of the support level 0.8950 (low of the daily Bullish Engulfing from the start of November), support trendline of the wide up channel from the middle of April and the 50% Fibonacci correction of the multi-month upward impulse sequence from the end of April. The breakout of this support area accelerated the active impulse wave (c).
With the rising GBP bullishness seen across the FX markets today – EURGBP is expected to extend the losses toward the next powerful support level 0.8870 (target price for the completion of the active impulse wave (c), which has been steadily reversing the price from the start of June – as can be seen form the daily EURGBP chart below).