The EUR/GBP closed the previous week on the upside. Besides, it managed to fixate above the range 0.8280-0.8680, which might attract interest to further buying.
Nevertheless, now the pair has to break the upper limit of the downtrend.
At the moment the viewpoint at the pair is still bearish since the EUR/GBP has formed a candlestick combination Bearish Engulfing on the downtrend.
Downside movement is supported by the fact that this candlestick combination has formed near the upper limit of the downtrend where the bulls did not manage to solidify and the bears started to increase their influence. Further a rebound took place.
As mentioned before, successful breakthrough of the support level near 0.8430-0.8450 targeted the pair to 0.8143.
It is worth highlighting that in case the Fibonacci correction level 50.0 is broken short positions should be closed since it will denote that the downtrend is breached and the pair will be targeted to 0.98.