Societe Generale: Bullish trend in EUR/GBP the past few months ended

EUR/GBP in the last few days remained under sustained pressure. The currency strategists of Societe Generale advised to pay attention to the fact that the technical picture becomes less positive and especially, that passing the lower limit of the bullish channel in December last year is a negative signal fro the pair.

The bank notes that the currency pair is very close to the support in 0.7880/30 pounds (lows for the last month and 50% of the growth on March 3-rd), and a more convincing break below these levels would have confirmed the beginning of a deeper corrective phase.

In this case, EUR/GBP could fall to 0.7650 pounds and Societe Generale believe that for those who dare to open short positions, it is advisable to place stop loss at 0.8000 pounds.