Last week's EUR/GBP movement led to a 'false' breakout. It has now pierced below the key support sitting at €0.8771. The next key support level now sits at €0.8728.

The euro is now trading at around €0.8755 against the pound. Last week, the forex pair broke out of the descending triangle suggesting a bullish price movement, however, this resulted in a ‘false’ breakout with the resistance then upholding its strength. We can now see that the initial bearish movement is in play, with the forex pair breaking the key support level sitting at €0.8771. Due to this break below, the price could now slide further towards support sitting at €0.8728.  Looking at the technical indicators, the MACD is negative and so is the RSI as it reads 31. Although the RSI is heading towards ‘oversold’ territory, hence a pullback higher may occur in the short term. Previous support of €0.8771 is now acting as resistance.