EUR/GBP currently sits on the price, which could pose strong support and prevent the price from falling further down. It is on the round number 0.8500, which is a psychological level.
The bullish Cypher Pattern has formed with the D point right on the support level, which signals the price could reverse and move up from the current price.
Forecast For The Pair
The price just moved outside of the uptrend channel, which indicates intense selling pressure.
In this case, with two opposite signals, it is good to wait for the price to make a bullish signal, which will confirm the bullish Cypher Pattern. Confirmation could be as a bullish engulfing candle or a bullish Pin bar.
If the price returns above the current support level at 0.84947, it will signify bullish pressure.
Profit targets are in the middle between the support and resistance range area, making the target highly possible.
The second profit target is on the resistance level of the range.
Stop loss is below X point, at 0.84419, which gives a risk to reward ratio up to 1:2.