EUR/GBP Almost Reached the Strong Resistance at the Diagonal Trendline and Started Falling

About three weeks ago I wrote about my expectations about this pair. The situation here has been developing very logically, the only difference being that I thought that the pair might rise with another 100 pips, but that didn’t happen. Rather than move a little higher, so it can touch the diagonal trendline, it started falling immediately and has been falling continuously for three weeks now.

As I am examining the monthly time frame I keep thinking that the almost 400 drop is just the beginning. On the other hand, on the smaller time frames (like the daily and the weekly ones) you can see that EUR/GBP has reached a serious support level at 0.7750 which is visualized by the green line of the (EMA)89 on the daily time frame and the middle line of the Bollinger Bands indicator on the weekly time frame. The support will inevitably slow the move to the downside and it is possible it will temporary bounce off of it.

If the pair manages to break below the support on the weekly time frame, it will probably continue falling towards the next support level at 0.7580 (the green line of EMA89). The next support below that one is 0.7450, which is the middle line of Bollinger Bands on the monthly time frame.