Forex technical analysis: EURGBP moves lower after ECB comments. Neckline on H&S broken.

ECB comments sending the pair lower

The ECB delay, has sent the EURGBP to the downside.

Looking at the weekly chart, the pair has moved below the broken trend line at 0.92156. That is now a risk level for shorts. The price is trading at 0.9177 currently.

This is the look from the daily perspective. The high today reached 0.92216 today - just above that trend line. We are moving away.

Drilling to the hourly chart, at the high today (before the employment report), the pair stalled at the 200 hour MA (bearish). The price has moved below the lower trend line at the 0.9180 level BUT the low has so far stalled at the 200 bar MA on the 4-hour. A move below will be more bearish. We are testing that level now...

The ECB wants a lower EUR (or so it seems). Although lower this week, the EURGBP is still near highest levels since 2009. It takes two to tango in a currency pair and the Brexit is still a weight on the GBP.

Technically though, the failure of the trend line break is more bearish. It is a matter of keeping that bearish momentum going before the feeling goes away. After all, the pair has been trending higher.

That means get below the targets below and stay below the broken risk levels above. The next stop on a break is the 0.9142-54 area, then below that a move toward 0.9100 and the 38.2% retracement at 0.9091 cannot be ruled out. Risk on the topside is the broken trend line and then the 0.9189 level.

PS. the 4-hour shows a nice looking head and shoulder formation. That too is more bearish....(see chart below).