Weekly EURGBP -3 reasons to target .7776.

Last week saw continued investor selling producing a fourth lower weekly high (1). This decline, overturned minor profit taking (2) and consolidation at points throughout last week, is reflected by negative momentum (3) and despite the concern of oversold extremes we look for losses to deepen in the coming days. In view of this our call is Bearish below .7950. The immediate objective is .7830 and a move through that point should see the market focusing on .7776 and .7744, a 50 percent correction of the 2000-08 rise.
The risk is that selling pressure is being overrated and this would be confirmed by a move up through .7950, last week's top. Further gains would then target .8005, half the net downside from two weeks ago, then .8044, the July 5 high.