Price plunged and seems too heavy to be stopped on the short term. EUR/GBP has broken through a very strong confluence area, which it has accelerated the sell-off. I’ve told you in the previous week that we may have another bearish momentum. The rate is trading in the red and personally, I’m expecting to see a further drop on the short term.

Maybe you’ll still have a selling opportunity if the rate will come back higher to test and retest the broken levels before will resume the corrective phase.

EUR/GBP dropped after the false breakout above the 150% Fibonacci line and above the upside 50% Fibonacci line of the minor descending pitchfork. I’ve told you in the previous days that the rate should drop after the failure to stay above the median line (ml) of the ascending pitchfork. Price has retested the median line (ml) and now is located much below it.

I’ve told you in the previous days that a valid breakdown below the lower median line (lml) of the ascending pitchfork it will announce a further drop on the short term. It remains to see where it could find a bottom again.

Technically, is could drop towards the upper median line (UML) of the major descending pitchfork after the failure to make a valid breakout above the 150% line.

I’ve added the H4 chart to show you some near-term potential downside targets. Price is expected to drop and reach the downside 50% Fibonacci line of the black descending pitchfork. The next target will be at the lower median line (lml). It should drop at least till the mentioned targets after the retest of the median line (ml) and the lower median line (lml).

Only a failure to reach the 50% line and the lower median line (lml) it could signal a potential rebound on the short term.