Based on the daily chart, the pair has a prominent Supply Zone between 0.8870 – 0.9050 which applied significant bearish pressure on the pair in the previous visit in
November 2016.
Since May 2017, the EUR/GBP pair has been trending-up above the depicted short-term uptrend.
A few days ago, a significant bearish pressure was applied over the pair allowing initial bearish reversal signs to appear.
Note that the price level of 0.8750 (Demand Level) may hinder further bearish decline. That's why obvious bearish breakdown below of 0.8750 is needed to enhance the bearish side of the market.
Recent Bearish breakdown of the lower limit of the depicted bullish channel that was established in June 2017.
Supply Zone existing around 0.8810-0.8860 has succeeded to pause the ongoing bullish momentum. This may indicate a possible bearish reversal opportunity.
Conservative traders can wait for a bullish pullback towards the mentioned supply-zone (0.8810-0.8860) for a valid SELL entry. S/L to be placed above 0.8880.
Projection Target should be expected near the price level of 0.8650 provided that early bearish breakdown of 0.8750 is achieved.
The material has been provided by InstaForex Company - www.instaforex.com