EUR/GBP struggled to establish itself above the 200-DMA (0.8590) which has resulted in extension of the downtrend. Economists at Société Générale expect the pair to plunge towards 0.8220 in case the 0.8300/0.8270 support zone gets violated.

Resistance seen at 0.8420

“The pair is now drifting towards the key support zone of 0.8300/0.8270 which happens to be the lower band of the range since December 2016. In the event this gets violated, the down move could deepen towards next projections at 0.8220 and 0.8110.” 

“The high formed earlier this week at 0.8420 is near term hurdle.”