The EUR/GBP currency pair closed up last week. Nevertheless, the EUR/GBP reduced slightly after that it did not break through the resistance level around 0.8535.
As it was stated earlier a successful support level breakthrough near 0.8430-0.8450 targeted the currency pair to 0.8143.
The view on the currency pair remains bearish as earlier the EUR/GBP has formed a combination of Bearish Engulfing candlesticks in a downward trend.
In addition, the support level breakthrough at 0.8535 means that this point of view is correct. Now the pair is likely to lower to 0.7750-0.7700.
In favor of the downward movement comes the fact that this combination of candlesticks formed near the upper line of the downward trend where the “bulls” could not solidify and the “bears” started increasing their influence and the rollback took place.
It is worth pointing out that short positions should be closed in case of breakthrough of Fibonacci correction level 50.0, as it will mean that the downtrend is overcome and the currency pair will target to 0.98.
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