• EUR/GBP consolidates today, after 0.50 Percent fall yesterday.
  • The pair trades without much action above 0.9008 level.
  • Bearish MACD indicates further downside targeting two-months-old support line.

EUR/GBP is trading near 0.9010 ahead of the European session today. The pair didn’t continue the weakness from yesterday trading and successfully held above the 50-day EMA. But, the bearishness hasn’t waned off: the weak MACD and price action below 21-day EMA suggest a potential fall to 0.8980 area – formed by an ascending trendline from June 16.

If the 0.8980 area fails to hold, then sellers will try to take monthly low near 0.8970, and the July bottom of 0.8940 will be in play.

For the bulls, a closing above 0.9015 can give some confidence to target 21-day EMA level of 0.9033. But, they will not be in full-swing unless the monthly high of 0.9070 is on broken on the upside. Then July high close at 0.9150 will be under threat from the now timid bulls.