EUR/GBP Technical Analysis: Has eroded 5 month uptrend line

• The EUR/GBP pair created a bearish outside-day candle and close at 0.8866 yesterday, confirming a downside break of the trendline connecting the Apr. 17 low and June 21 low.
• The downside break of the trendline would gain more credence if the pair closes today below the 200-day EMA support of 0.8858. That would allow a deeper drop to 0.88 as the 14-day relative strength index of 41.00 is biased toward the bears.
• On the higher side, a daily close above the descending 10-day EMA would weaken the bearish case.

Daily Chart

Spot Rate: 0.8870

Daily High: 0.8875

Daily Low: 0.8859

Trend: Bearish below 200-day EMA

Resistance

R1: 0.8890 (100-day EMA)

R2: 0.8918 (previous day's high)

R3: 0.8943 (38.2% Fib R of 0.9099/0.8848)

Support

S1: 0.8858 (200-day EMA)

S2: 0.8816 (July 2018 low)

S3: 0.8803 (61.8% Fib R of 0.8621/0.9099)