EUR/GBP: trade idea
• EUR/GBP reached sell target 0.7430
• Next sell targets - 0.7380 and 0.7340
EUR/GBP recently broke down below the support level 0.7430, which was set as the sell target in our earlier report for this currency pair. After breaking below this support level, the pair corrected up to test this price level (acting as resistance now after it was broken) – after which it reversed down and continues to decline at the time of the writing. The resistance zone near 0.7430 was further strengthened by the upper resistance trendline of the daily down channel from the start of January (as you can see from the daily EUR/GBP chart below).
With the daily RSI still trading outside of the oversold territory, EUR/GBP will most probably continue to fall in line with the strong downtrend visible on the daily charts toward the next sell targets - 0.7380 and 0.7340 (intersecting with the support trendline of the weekly down channel from 2011).