Last week, the formation of the reversal pattern took place in the lower timeframe, which indicates a high probability of decline to the week-long CP at 0.8840-0.8821. Any upward movement is considered corrective.
Medium-term plan.
At the beginning of this week, the downward movement takes precedence which indicates the need to hold a short position up to a weekly short-term at the range of 0.8840-0.8821. It is important to understand that from the mid-term point of view, the accumulation zone is formed. Monthly highs moved forward as targets and levels of support and resistance. The accordance of these levels with one of the control zones will make it possible to determine the next priority in case of testing of the price. When the EUR/GBP pair is fixed below 0.8821, the next target is the September low.
An alternative pattern will develop if the pair can hold most of the dip last week. This will allow considering the growth of the maximum in the past two weeks, where the direction of the downward movement will be determined.
Intraday plan.
Last weekend, the pair consolidated below the NKZ 1/2 0.8936-0.8927, which indicates a top-down priority. The goal of the downturn is the weekly control zone at 0.8840-0.8821. Reaching this zone will allow fixing some portion of selling and others will be withdrawn in breakeven, in case that the descending movement continued in the medium term. The determining resistance is the NKZ 1/2 0.8980-0.8971. While the pair is trading below this zone, and will continue to generate a bearish momentum.
Daytime CP is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly CP is the weekly control zone. The zone formed by important futures market marks, which change several times a year.
Monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.
