EURGBP - Bearish with lower highs, but momentum slowing

The series of lower daily highs remains intact and the dominant feature in the background for EURGBP. However yesterday saw EURGBP stall on the downside at exactly the same levels as Monday. This resulted in an almost unchanged close, and an indecisive ‘Inside Day’, that highlights investor uncertainty but it is the underlying tone and the upside failure that is currently assessed as the important features. In view of this our call is Bearish below .7877. The immediate objective is .7831, this week's low, with a move below that point targeting .7813 then towards .7776.

The risk to this call is that selling pressure is weaker than currently assessed. This would be confirmed by a move above .7877, yesterday's top, with renewed demand then focusing on .7898 then .7916, last Friday’s peak.