AND...Head and shoulder neckline broken
The EURGBP enjoyed good gains since November on the back of the threat of Brexit. The tide seems to be turning and we are starting to see a bit of an unwind.
Technically, looking at the daily chart above, the price has moved below the 100 day MA for the first time this year and the first time since Dec 7, 2015. The 100 day MA is at 0.7705 and is now a key resistance level now.
ANother bearish development is the breaking of the Head and Shoulder neckline right around the 100 day MA level. Needless to say, that was a big break.
Looking at the 5- minute chart, the price action around that break showed some apprehension at first, but then the sellers started to overwhelm and the price continued the trend lower.
The break is a key break. NO doubt about it. The 38.2% is the next target at the 0.76823. I don't like to measure out Head and Shoulders but for those who do, the measure would take the pair to around 0.7350. Do not get starry eyed. I will look to see today, if the 38.2-50% o of the leg down from the key break holds resistance. That level comes in at 0.7743-48 currently (will move if now lows are made).
The trend is strong.