EURGBP - Double top

EURGBP (D) - medium term bearish bias

The pair started to form a double top after the euro failed to break above the previous high of 0.8590. This bearish pattern was confirmed by a dip below the major daily support level of 0.8450. Now that the 20-day moving average is crossing below the 30-day one, sentiment has turned downbeat. We would expect the euro to resume its downtrend against the British pound. 0.8300 will be the immediate target should the pair complete a M pattern.

Key support: 0.8300
Key resistance: 0.8590