EUR/GBP – Re-test of last week’s low likely

Pair’s repeated failure to take out 50-DMA followed by a drop on Monday to 0.8421 suggests the corrective move from the low of 0.8334 has ended and the spot has resumed the larger downtrend from the high of 0.8725 levels. Thus, last week’s low of 0.8334 could be put to test again.

Bearish invalidation is seen only if the cross sees a day end close above 50-DMA level of 0.8475.