I’ve been waiting for this cross to really blow lower for a couple of months now and we’re looking at the downside once again. We’ve found support around the 2008 support line 0.7796 after following the underside of the broken Feb 2013 support.

EUR/GBP H4 chart 31 12 2014

EUR/GBP H4 chart 31 12 2014

We’ve quite a few support levels around here. after the 2008 line we found support in Oct around 0.7765 and have the 2012 low just under there at 0.7755 and the 50.0 fib of the 1998/2008 lo/hi at 0.7742. Finally we have the 2008 low at 0.7694.

EUR/GBP Monthly chart 31 12 2014

EUR/GBP Monthly chart 31 12 2014

The pound is starting to show some resilience to the dollar and while that continues, and EUR/USD remains under pressure, we could finally get enough in the tank to have a proper crack at the downside. If the ECB pull QE out of the bag later in Jan that might be just be the biggest catalyst.