EUR/GBP – Correction likely if Asian session low is breached

Despite pair’s retreat from yesterday’s high of 0.8843, the subsequent rebound from the Asian session low of 0.8785 and a rise to 0.8810 suggests the pair may re-test 0.8843 again, although overbought RSI on the daily chart warrants caution.

Failure to hold above 0.88 levels if followed by a drop below 0.8785 would shift risk in favor of a deeper retracement to 5-DMA level of 0.8756.