EUR/GBP - will it break and close back above 0.9000?

It was a week of volatility for EUR/GBP, with price sent spiralling down at the start of the week due to COVID-19 vaccine news, and the upside the UK could expect to see as a result. This pushed price all the way down to the 0.8875 support zone. Price held at this level, and with vaccine news subsiding later in the week, price then experienced a bullish day on Thursday sending price back to 0.9000. As a result, on the weekly timeframe, EUR/GBP created quite a convincing pin bar.

However, after the clear break of the ascending weekly trend, the outlook for EUR/GBP is now more bearish. The most recent bullish move, could simply be a retest of this broken weekly trend. This week, if price does not break above 0.9000 the likely outcome will be a bearish return to the 0.8875 level. If price manages to break and closes above 0.9000 and breaks through the descending daily resistance currently in place, price could then extend up to 0.9135, but we believe this is less likely given the latest daily structure.