EURGBP has formed lower highs connected by a falling trend line that’s been holding since November. Price looks ready for a pullback to this resistance zone after bouncing off the lows at .8220.

The Fibonacci retracement tool shows additional levels where sellers could be waiting. The 38.2% Fib is close by at .8275 or the 50% level closer to the trend line at the .8300 major psychological mark and 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the path of least resistance is to the downside. The gap between the indicators is widening to reflect strengthening selling pressure.

If any of the Fibs hold as resistance, EURGBP could resume its slide to the swing low or lower. The line in the sand for a pullback is the 61.8% Fib around .8308.

Stochastic is still on the move up to show that there is some bullish pressure left, so the correction could keep going until the oscillator reaches the overbought zone and turns lower. RSI has more room to climb before reaching the overbought area, so a larger correction could be possible.

A break above the trend line and Fibs, on the other hand, could signal that a reversal from the downtrend is in the works. Price could also hit a ceiling around the 200 SMA dynamic inflection point.

EURGBP got a boost from the less dovish ECB statement, as the central bank cut rates by 0.25% as expected and removed some hawkish wording but also lifted their growth outlook. This dampened hopes of aggressive ECB rate cuts early next year, as policymakers are likely to take cues from incoming data and any regulation changes from the Trump administration instead of acting prematurely.