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EUR/GBP decreased significantly since Friday after jumping above the downtrend line and beyond the 0.8700 psychological level. The pair is trading back below the downtrend line, so you should wait for a new upside breakout before considering going long, buying.
The selling pressure remains high as long as the pair is traded below the downtrend line. Selling here is risky after a 2-month drop, so maybe you should wait for a buying signal which could bring a trading opportunity with a great risk/reward ratio.
Buy EUR/GBP if the price increases and jumps above 0.8715. Jumping above the former high could validate an upside reversal. 0.8850, 0.89, and 0.90 levels could be used as upside targets.
The Stop Loss should be placed below a former low, peak low, maybe today's low if the price continues to increase from here.
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