Apart from GBP and EUR crosses, this “cross” pair was also one of my favorite pairs to trade this month. On the Daily chart it made an “Indecision candle” on 28 Aug and I started selling the pair to 0.9040. In fact (and lucky for me), I asked Wayne in a webinar last week to analyse the pair and he kindly did so and that also gave me further confirmation to continue selling this pair. I continued selling until the 87.80 support level on Friday.
The pair is now somewhat oversold and traders can expect a bounce from this level in the coming week. Watch for a pull-back to the 89.25 resistance area for a sell-signal. A daily close below 0.8780 would open up to the next support at 0.8600 with a close below that opening up to 0.8369.
Of course, this plan is based on a weak EUR and strong GBP and the strong downtrend.
Note: There is an “unfilled gap” from April 21st at 0.8369. EURUSD closed a gap from Jan 2016 recently, so for what it’s worth, I’m mentioning this and not saying that we must trade gaps!