ING discusses EUR/GBP technical outlook and notes that the short-term trend is down after the close below the horizontal support around 0.8845, but the downside potential is limited from here.
"Prices are currently hovering around the horizontal support at 0.8750 with longer-term solid horizontal support coming in between 0.8690 and 0.8630.
A short-term rally should offer the next selling opportunity with first resistance coming in at the former breakout level around 0.8845 and EMA-200 line at 0.8853. Overhead resistance comes in at the falling trend line and declining MA-50 line, both around 0.8925," ING argues.
"We recommend selling the rallies," ING adds.