EURGBP continues to trade in a 60 pip range following a confirmed double top between March and April. Since the daily close below the neckline on April 13th, the pair has traded in a tight range between .7162 and .7225 and has yet to make a decisive move in either direction.
That said, I have to favor the downside given the bearish pressure that has plagued the pair since July of 2013.
But the bears have their work cut out for them. The .7162 level continues to act as support which doesn’t leave us with much room to maneuver. Therefore the prudent approach is to wait for a close below .7162 before considering a short position.
Alternatively, a close back above .7225 could reignite short-term bullish interest which would see the market retest the key .7290 handle.
Summary: Wait for a 4 hour close below support at .7162 and then watch for bearish price action on a retest of the level as new resistance. Key support levels come in at .7102 and the multi-year low at .7012.