Vladimir Ribakov analyzes EUR/GBP for a sell setup, spotting a bearish MACD divergence on the daily chart. Price has broken a double-top and support level. He targets 0.8740-0.8720 first, then 0.8680-0.8660 if the decline continues.
There's a bearish divergence developing here. While the market is making the higher highs, MACD starts to make the lower highs. On a daily chart, a bearish divergence as well and a very strong bearish candle pattern here with 3 major spikes. A double top is broken and the support is broken as well. There are 2 scenarios on the EURGBP. Scenario 1, retraces and a drop down. Great target zone in that case could be all this range around the 0.8740 down to 0.8720. Next potential target could be all the way around the 0.8680 down to 0.8660. And scenario 2, the pair retraces upside, completes another final run, completes a bearish divergence on the moving average of the MACD, and from there a major retrace to the downside, probably even a trend change.
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