EUR/GBP: Visits the 200 day EMA

The Euro versus the Pound has had a very good bearish momentum since it started dropping on Wednesday when it made a high on the 0.8735 zone. During today’s session the Euro has been losing ground versus its main counterparts, including the Dollar and the Pound, but the drop has been more pronounced versus the Pound, not only because of weakness on the Single Currency, but on the fact that the Pound has been gaining a lot of strength. At the moment, the EUR/GBP has reached its 200 day EMA (blue line), around the 0.8516 level. We may find some entry opportunities on the EUR/GBP around the 200 day EMA, either on a breakdown or a bounce from that moving average. If the pair bounces from the 200 day EMA, then it could try to go and visit the 0.8600 level, which acted as a support in the past, but now may act as a resistance. In case the pair breaks to the downside, then it will practically have the road clear to drop all the way to its latest low at the 0.8400 zone.