EUR/GBP Found Some Support

After the last retracement during which EUR/GBP reached the resistance at 0.8590 only to fall again and form a new low at 0.8460 the pair is now retracing once again, because it encountered a pretty strong support at that same level. More importantly, the pair formed a spinning top candlestick above that level on the daily time frame before the move to the upside began. The next target EUR/GBP will likely reach is 0.8590 – 0.8600, which also coincides with the MA(89) indicator on the daily time frame. Whether this is the end of the move to the downside, considering the spinning top candlestick on the daily time-frame, or the pair will repeat the pattern of behavior that we have seen in the past two weeks – a significant retracement and then forming a new low – remains to be seen.