By FXEmpire.com
The EUR/GBP pair initially tried to rally during the Monday session, but fell as people realized they were buying the Euro. (At least that’s a thought!) The pair has broken down below the previous support level at the 0.7950 area, and during the Monday session managed to bounce back up in order to retest it for resistance.
This could be a classic case of breaking out, and retesting the previous levels. This would make sense as the trend is most decidedly to the downside in this market, and the fact that the candle for the Monday session looks quite a bit like a shooting star. With this being said a break of the Monday lows, and more specifically the 0.79 level should get more sellers involved and become good sell signals. As for buying, it simply cannot be done at this point in time.
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Originally posted here
