I have been talking about a possible fall of the Euro against the British pound almost ten days ago in the my previous articles about EURGBP. Since then the price has fallen around 250 pips, to a strong support area found around the round number level, 0.7800.
If this week will close below 0.7850, another bearish signal will emerge. The break and close below the trend line could tell us that this might just be the beginning of a bigger down move. Even though the main weekly trend is down, as you could see on a bigger zoom out chart, it could be too soon to expect the beginning of a new impulse. I would rather take it step by step. The first one would be a break below 0.7800 and a drop towards the 38.2 - 50 retracement area (around 0.7600).
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