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The EURGBP is staying below the 0.9090 resistance level, at least for now.
I wrote about this breakdown last week. The first was on August 19th when a combination of signals suggested a top was in place.
The second commentary came on the 22nd as EURGBP was breaking below the 0.9090 area.
That sub 0.9090 close had us watching for a retest of the area as new resistance.
So far, sellers have defended the area on a daily closing basis.
As long as 0.9090 holds as resistance, I have to favor selling EURGBP.
But sellers need to take out last week’s low at 0.9040 if they intend to push the pair lower toward the 0.8915 area.
The longer EURGBP hovers below 0.9090 resistance without retesting 0.9040, the more I will dislike selling the pair.
And if buyers do close EURGBP back above 0.9090, it would indicate that this latest move was a bear trap. It would also expose the next key resistance at 0.9180.
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