EUR/GBP Outlook: Continues To Travel South, On Track For The Sixth Monthly Close In Red

The cross remains in steep fall for the third straight day and extends weakness through pivotal support at 0.8515 (Fibo 38.2% of 0.6924/0.9498 ascend) on Monday.

With no more support for the single currency from UK’s month-end purchases for the EU contribution in post-Brexit era, the risk turns clearly to the downside.

Firm break of 0.8515 would increase risk of attack at the floor of multi-year range (since Brexit vote in 2016).

Bears eye strong support at 0.8404 (100MMA) and may extend towards 0.8280 (range floor / Dec 2019/Feb 2020 double-bottom), as the pair is on track for the sixth consecutive monthly bearish close, with the action accelerating lower in past three months.

Daily and weekly studies in full bearish setup support the notion, with corrective actions expected to stay below 0.8575 (falling 10DMA).

Res: 0.8533, 0.8575, 0.8584, 0.8607.
Sup: 0.8505, 0.8463, 0.8421, 0.8404.