TechnoMeter

After being confined to trading within a horizontal range between 0.89525 and 0.90607 since December, the Euro is quickly losing ground against the British Pound after a rising support line was breached as anticipated. Not only has EUR/GBP fallen about 2.25% since January 11th, but also the pair achieved its longest daily losing streak since October 9th (5 days). Fundamentally, this has been due to the latest Brexit developments.

It is now facing its next big test that could determine if the new downtrend may accelerate. This is a horizontal range of support in-between 0.88384 and 0.88108 which is composed of the lows achieved back in late November. Coincidentally, the outer boundary of support is where EUR/GBP paused its descent on Wednesday. Falling through may open the door to testing the November 2018 lows around 0.86683.

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