EUR/GBP: Next down targets if this small support breaks...

FX:EURGBP   Euro / British Pound
108 0 12
We currently have some support at 0.8608... Once we break below this, we need to look at targets. The fact is that we did break below the 'up' trendline' and that the daily chart momentum indicators have alot of room for price to go down...

Looking at the moves from the top the first scenario to consider is that of a zigzag corrective pattern.
Based on this I just added a possible harmonic move to this 4H chart, first target is the 1.272 to 1.414 ext. and ultimately the 1.6181 ext. The MA(100) is getting closer also, look for confluence with any of the fib extensions and the price hitting that MA...

If it's a larger degree correction (of which we possibly finished waves 1 and 2 of A) or a whole new downtrend then the down target could be much lower of course (possibly backed by daily indicators coming back from overbought), therefor I'm keeping my shorts which I had from almost the top (see previous weekly idea). The Cypher shorts I closed today.

Comment: If it starts going up again I will be on the lookout for this next...:

Possible bearish bat / double top...
Once we get closer and we get some confirmation from momentum indicators I will publish...
Comment: Stochastics oversold, AB=CD just about finished, 1.27 ext. closeby as is the MA(100)...
Look for signs of slowing down folks...
Remember though that this is only the min. requirement of the AB=CD and that on the daily there is still room to drop more based on momentum indicators.
Still possible that this will turn into a 5-wave structure but in case it's corrective we could be close to a reversal.
Short-term traders could consider taking (at least partial) profits. I will take some here...
And of course SL should now be at BE imo...
Comment: Updated idea on the AB=CD:

The bat of course was invalidated by this move!
Comment: Some reaction at the 1.618 and MA(200). If anyone went long there: first target should be around 0.8580 but trail SL to BE asap I would say since I'm not sure if the down move is over yet. We should have some up retracement though...
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