Potential SELL on EUR/GBP

FX:EURGBP   Euro / British Pound
The bulls quickly took the EUR/GBP pair higher from a big support area (around 0.8550) on the four-hour chart above, taking it back to a fast bearish reversal point from last week (0.8635).

If the data disappoints in general, the bearish technical signal may trigger a short-term bearish reaction on EUR/GBP . With a regular ATR of about 50 pips, a switch from current levels down to the strong support area within a session or two is not out of the question.

Of course, if European business sentiment surprises us in a major way (unlikely given the German lockout extension), the technological setup would be invalidated.

If we see the support line holding tight, we can have a BUY opportunity in the 0.85534 zone.

*This is not financial advice. Do your own research before entering any trades.