50% retracement next target

The EURGBP tumbled lower as traders broke through technical levels on steady selling. The 200 bar MA on the 4-hour chart, trend line support lines, the 38.2% - all broken one-by-one (see 4-hour chart below). The GBPUSD helped the pair - as it had it's own run to the upside.

Looking at the 5-minute chart, it highlights the trend like selling, and may show why the pair stalled. A lower trend line stalled the fall and we have seen a modest toe-in-the-water bounce as traders leaned. Does it reverse the fall? Close resistance is at 0.8797-0.8808 (see 5-minute chart below).

Technically, the selling seems to be have been pretty strong. The question becomes, "Why head lower?" Perhaps there is a renewed hope that the changes in the UK are being mirrored with changes in the US and that is ultimately good - not bad. Meanwhile the EU is stuck with coordinating different countries with different agendas, people, problems, economies, etc.. It is difficult. Are they being left behind?

Stocks are liking it in the US despite the uncertainty as the S&P moved above resistance at 2146 (it did not take long). That is more bullish if it can stay above.

Looking more longer term at the daily chart the EURGBP remains near high levels after ruging higher after Brexit. Today at the highs, the topside trend line held. That helps contribute. ON the down side, the 0.87117 is another target. It was swing highs in August and again in September. Below that the 100 day MA has not been tested since Brexit.