EUR/GBP return below 0,8600 suggesting a possible extension of the drop toward the 200 hours line at 0,8580. The closing last night was weak below the low of the previous session.
The indicators of the daily have returned toward the line while those of the s/t ones are negative suggesting further consolidation/ correction. On the way up the cross failed to form divergences in the s/t charts, if not very small and insignificant, suggesting that the present drop could be impulsive with a potential target at 0,8464. A break below the support line at 0,8545 will confirm the extension!
We expect however good support already at the 200 hours line at 0,8580 from where we could see another test on the upside.
Despite the negative reversal situation the s/t scenery is not so clear and we prefer therefore remaining on the sideline.
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