EUR/GBP is on track for a big week as sellers breach the YTD low at 0.8469, continuing bearish developments since August and tapping prices last seen in May 2017. The pair is testing an important corrective fib level at 0.8435. This is the 38.2% fib of the 2015-2016 bull trend and may offer longer-term bulls some relief, especially if they defend well. However, a slip below here could deepen downside risks, opening up the doors to a key support zone at 0.8381-67. The lower bound level at 0.8367 level is the midpoint of the 2009-15 bear market and is a suitable target level over the coming weeks for those in short positions.
- Momentum breadth studies highlight broader GBP positivity against an overall negatively alighed EUR backdrop. This is also seen through their YTD performance where GBP outperformance is tangible (which is mainly due to the surge over the last few months).
- Next key SUP levels at: