EURGBP - Temporary selling to target .8085
Against a background of bullish signals for EURGBP sentiment for this week, yesterday's trading was subdued. All price action was confined within Friday’s range – highlighting a degree of investor indecision with an ‘Inside Day’. This price action does not provide strong signals for sentiment but it is the rejection of yesterday's top, at lower levels, and negative momentum that is likely to be the immediate backdrop. In light of this our call is Very Cautiously Bearish below .8135. The immediate objective is .8102, yesterday's base, and a move through that point should see the market focusing on .8085, Friday’s low point, or even towards .8062, the Marabuzo line.
The risk is that selling pressure is being overrated and this would be confirmed by a move up through last week's .8135 peak. Further gains would then target .8148 or even .8166, October’s high.