EURGBP trading in a support zone

The Euro has been falling against the British Pound for the second month, since the EU and Britain concluded the trade negotiations with an agreement. This way Britain exited the European Union with a deal, helping its currency to rise.

The EURGBP pair hit a nine month old support area (A) and could move down another 100 pips within this zone. If price broke above the descending trendline (purple), it could rise towards the first resistance level around 0.8900 (B), which is converging with the 50 moving average. Further resistance would be in the 0.9040- 0.9090 zone (C).

Should the bears continue pushing the course through support A and price fell below the 0.8660 level, it could fall potentially another 260 pips to the next support area around 0.8400 – 0.8330 (D).