EURGBP has been kept in a 500 pip box this year
We're around 50 pips from important support in EURGBP. The Jan 2007 support line has played a big role this year. We're close to testing that support once more as the euro finds some sellers again
EURGBP weekly chart
From the October highs we've pretty much been going down a one way street so it's levels like the ones we're approaching that we need to pay heed to. We tried and failed to break the upside and there's now a chance of testing the downside
The Jan 2007 line is one place to trade a break as it would open the door to a move towards the year's lows. The action from 0.7050 down is a bit messy. We've seen further S&R around 0.7030/40 and 0.7015/20 and the breaks through 0.70 haven't lasted long so the downside will need to be managed closely
There's equal opportunities for trading both longs and shorts from the levels but either way a fairly tight stop would be advisable. With the market still unsure what rabbit the ECB will pull out if its hat in Dec, the downside pressure remains as there's no clues what to price in. The potential shock factor is still high, unlike it is for the Fed
