With the release of weaker than expected UK GDP data, EURGBP gained strength, but Alan Collins from 3c Analysis says that momentum was short lived.

The market has already demonstrated an inability to extend last week’s rally. The currency pair’s momentum stalled at the 13 day moving average, which created a selling trend and caused the currency pair to hit a new daily low.

All signs are pointing towards further negative momentum for EURGBP. This is demonstrated by the Keltner channel’s negative trend and the recent 76 percent correction to this year’s gains. With this downward momentum Alan is focused on 0.8158.

He says only a move above 0.8259 negates this negative trend.

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