EUR/GBP Price Forecast: Reaches major support level at historic lows

• EUR/GBP has fallen to a key support level as it drills ever lower. 
• The pair is in an overall downtrend supporting more downside, however, bearish momentum remains tepid. 

EUR/GBP has fallen to a key support line at the level of the October 1 and 18 lows, in a zone between 0.8295 - 0.8310. It is currently bouncing although the trajectory of the short, medium and long-term trends is probably still bearish. Given the technical analysis principle that “the trend is your friend” this suggests the odds favor more downside. A break below the October support floor, therefore, remains a distinct possibility.  

EUR/GBP 4-hour Chart

If EUR/GBP manages to break below the 0.8295 level (October 18 low) it will probably confirm a decisive break below the aforementioned support. This, in turn, would likely see prices fall further, with the next potential downside target at the 0.8250 round number and then the lower channel line around 0.8220. 

The Relative Strength Index (RSI) momentum indicator is relatively elevated compared to the oversold levels it reached during the early-October lows. This suggests a lack of downside momentum which might be a sign further weakness will be limited. 

In addition, the pair is at historic lows, and further losses would be well below the pair’s long-term average.