EUR/GBP - Slipped Violently Below Uptrend Line, Hitting Our Target at 0.8995 - 09/13/2017 (GMT)

The euro remained under pressure against the British pound since September 3, sliding lower to a six-week low, reflecting the deeply bearish mood of investors. The EUR/GBP pair fell more than 300 pips, sinking from the 0.9306 resistance level. It is worth to mention that the price met our suggested target at 0.8995 (see previous technical analysis here: http://bit.ly/2f1gxFl) and broke the ascending trend line, which was held since May, to the downside.

Technically, the break below the 0.8995 support level changes the short-term outlooks to negative as the next immediate level to have in mind is the 0.8925 strong barrier, which coincides with the 100-day SMA as well as, with the 38.2% Fibonacci retracement level with low at 0.8310 and high at 0.9306. A cautious stance is required until we see the final reaction of the price following the aggressive rally down to 0.8995. On the daily timeframe, the RSI indicator is falling near the 30 level and the MACD oscillator slipped below the zero line.