On a daily chart the EUR/GBP is again testing the support level near 0.8423. The viewpoint is still bearish, as the downtrend is observed. As it was mentioned earlier, in case the level of 0.8423 is broken out we forecast the decrease to support level of 0.82.
Earlier on a daily graph the EUR/GBP has formed the combination of candlesticks Bearish Engulfing that indicates the downside movement.
This combination of candlesticks shows that the currency pair was increasing during a couple of weeks after it failed to breach the support level of 0.8067. However, the pair reversed having come closer to 0.8950. This means that the bears activated here and did not allow bears to strengthen.
The breakthrough of the Fibonacci correction level 38.2 and support level of 0.8626 confirms this point of view.
It is recommended to place the stop orders slightly above 0.8600, as the breakout of this level will target the pair to 0.8821.