Current trend
EURGBP formed a bearish engulfing candle. The fear of a European recession sent the pair below 0.8500. After the perpendicular downside move, the pair is now consolidating near the lows at 0.8460. With the wide divergence policy between the ECB and BoE, and the further increase in interest rate by the Bank of England, the pair is aiming at lower levels.

Technical analysis
The pair is heading downward below the lower Bollinger and the 10MA, consolidating in a narrow range at the level 0.8460. RSI is preparing to rise upward giving hopes for an upward correction. MACD is in the negative zone with an increased histogram. Stochastic is reversing upward signaling more upside in the near term. Breaking level 0.8430 will let sellers open the door to 0.8390 which will extend to level 0.8355. Buyers must break the support level 0.8511 to confirm the bullish trend toward 0.8582 and continue the move further toward 0.8685.

Key levels to watch from the upside 0.8511, 0.8582, 0.8685 – from the downside 0.8430, 0.8390, 0.8355