EUR/GBP saw huge slump in Wednesday's trade. The pair broke major support at 0.7790.
Downside seems be pausing at 38.2% Fib retrace of Nov-Apr rally at 0.7683. Break below needed for further downside.
EUR/GBP trades with a major downside bias on the weekly charts, break below 38.2% Fib will see test of 50% Fib at 0.7550 levels.
With the Fed minutes now behind, focus shifts towards the ECB meeting accounts ahead.
Immediate support lies at 0.7652 (Mar 10th lows), while immediate resistance is located at 0.7716 (Feb 5th high).
Good to short breakout below 0.7683, target 0.7650/0.76/0.7550
BOE Gov Carney in his testimony defended BoE's quarterly Inflation Report and Brexit warnings.
However, he sounded confident that BOE can ultimately achieve monetary stability whether UK is in EU or out of its membership.
TP1 achieved, place stops at 0.7685, hold for downside.
Technicals are bearish, EUR/GBP on track to test 200-DMA at 0.7519.
Break below 200-DMA will drag the pair to 0.7415 (61.8% Fib of Nov to April rise)
Stay short, target: 0.7550,0.7520