False breakout on the EUR/GBP

The Euro has been weakening versus its main counterparts, including the Pound, even breaking below its 200 day EMA as shown on the daily chat, blue line. The EUR/GBP tried to gain bearish momentum at the beginning of today’s session, but it lost that momentum and comes right back to the 200 day EMA. If the pair does not confirm the breakdown below the 200 day EMA, then a false breakout will be completed. To the upside, above the 200 day EMA, its next important resistance could be the 55 day EMA, which is currently just below the 0.8600 level. But we must keep in mind that the 200 day EMA may also act as resistance and the price of the EUR/GBP may come back down from that area. If the pair goes back down, then its next relevant support may be the round number level at the 0.8300 zone.