EURGBP failed last month at a trendline that dated back to 2009 and in so doing formed a clear double-top. The neckline at .8575 after being broken has since been tested unsuccessfully. This now sets the stage for a resolution lower to the projection target at .8341. S/t, the .8341 projection target is also symmetry between Wave 1 and what would be considered Wave 3. There is minor support along the way at .8446. A move back through the breakdown and the Wave 2 high at .8600 negates both the double-top breakdown and the expected Wave 3 decline Levels: Support – .8446, .8341, .8285 Resistance – .8575, .8601
Nomura