EUR/GBP has fallen a long way, and today the focus is firmly on the 200‑day moving average at 0.8634. This level rarely gives way without a fight, and we’re already seeing signs of short‑covering as the market probes these lower levels.
The slow stochastic is under 10%, firmly in oversold territory and beginning to turn higher. Any bounce from here is likely to be correctional rather than a trend change, but it’s still important to respect the technical setup.
For me, the market doesn’t yet have the momentum to break the 200‑day M/A decisively. However, a clear break of 0.8590 would signal that the downside has much further to run.
Until then, I’d prefer to see EUR/GBP correct its oversold conditions before considering fresh shorts. I’ve added Fibonacci retracements to frame the corrective levels, and today’s daily pivot points should act as useful swing markers.
