TechnoMeter

Last week, the Euro entered consolidation mode against the British Pound after what appeared to be a false breakout above a falling trend line from August. Since then, the range of price action has solidified as traders eagerly await a breakout. The upper boundary of resistance is a horizontal range between 0.89449 and 0.89235. Meanwhile the lower border is between 0.88384 and 0.88108.



There is an early warning signal that EUR/GBP's next leg might be lower. Negative RSI divergence has appeared during the pair’s attempt to break above the range of resistance. This shows that upside momentum is ebbing and that the push higher is becoming more and more of a struggle. With that in mind, EUR/GBP may find itself soon testing consolidation support.

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