Fear of Brexit has weakened the GBPUSD tanking the pair below 2010 lows and getting close to 2009 historical lows. As I have shown in the previous GBPUSD coverage the pair successfully broke through 1.4050 dropping and hitting our projected target. All this turmoil had a positive effect for EURGBP cross as we could have witnessed a strong bounce upwards.

The pair has reached 0.7927 that is EMA89 on Monthly chart. This is strong resistance and by dropping to H4 time frame, we can see a bearish divergence formed slighlty above H5 camarilla pivot point. The price is currently 0.7907 and it might be due for a correction. If divergence is successful the pair should drop towards 0.7830 and 0.7780-0.7800 that is a POC for possibly another long trade (H3,EMA89,61.8,inner trend line). A rejection off POC targets 0.7830 and 0.7900 respectively,

So at this point we should be focused on a possible correction and rejection from current levels.

EURGBP

The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.

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