Alan Collins from 3c Analysis is predicting lower levels in EURGBP over the next few days. Trading in the currency pair has been dominated by negative momentum since November’s peak and RSI indicators suggest that a rally is unlikely. Alan is however exercising caution due to continuing reaction following Thursday’s European Central Bank meeting and US Non-farm Payroll data out later this afternoon.

The markets experienced a bought of volatility after Thursday’s ECB meeting with the Euro rallying from a two-year low against the dollar and nearing a six-year high against the yen. Investors had been hoping that ECB President, Mario Draghi would provide details on a potential stimulus programme for the Eurozone. Instead, Draghi stated that a decision whether or not to pursue a stimulus plan would be made by early next year.

Alan is targeting a move lower towards GBP 0.7849 and GBP 0.7842. A stop can be placed at GBP 0.7979.