EUR/GBP: Break below 0.8400 to lead towards 0.8380 – Société Generale

EUR/GBP decline has stalled after forming interim trough near 0.8400 recently, Société Generale FX strategists note.

A fall towards 0.8350/0.8340 is possible

“Daily MACD has been posting positive divergence denoting receding downward momentum, but signals of a meaningful rebound are not yet visible. The 50-DMA near 0.8465 is first layer of resistance; this must be overcome to confirm a larger bounce. Inability could mean risk of deeper pullback.”

“Break below 0.8400 can result in next leg of down move towards 0.8380 and perhaps even towards next projections at 0.8350/0.8340.”