The British pound weakened against all other currencies due to the Brexit situation. Today we are going to pay attention to the EUR/GBP pair.
Technical analysis features
The 200 EMA is heading downwards on 1D TF, which confirms the bearish trend. But the pair broke the trend line and the bulls are trying to gain a foothold above the trend line. There is one setback on the bulls’ way: the 0.8660 level, which can be seen as a horizontal resistance one. That means that the price can bounce back from this level and return at least to the trend line.
On the working 4H TF the pair has reached the 200 EMA. The MACD line moved far from the signal line. There is a possibility of reversal. Williams %R is in the overbought zone.
Summary: if the pair breaks 0.8650 downwards it is possible to open short positions. The first target will be 0.8600.
We recommend that you pay attention to Markit Composite PMI, which comes out on Friday at 9 a.m. GMT.