Break below 0.8400 to lead towards 0.8380 – Société Generale

EUR/GBP’s decline has stalled after forming an intermediate floor near 0.8400 recently, note strategists at Société Generale FX.

A drop towards 0.8350/0.8340 is possible

“The daily MACD has posted a positive divergence denoting a pullback of the downward momentum, but signals of a significant rebound are yet to be seen. The 50-DMA near 0.8465 is the first layer of resistance; this must be overcome to confirm a larger jump. Failure could mean the risk of deeper withdrawal.”

“The break below 0.8400 may lead to the next move down to 0.8380 and maybe even to the next projections at 0.8350/0.8340.”