EUR/GBP More likely to continue falling

Since the beginning of the week the EUR/GBP is trading lower baked up by the GBP rally and uncertain single currency. Today the EC President Jean-Claude Juncker has reinforced the tension, pointing out on an event in Spain that in the months ahead  the unity of the European Union is likely to be called into question and the upcoming Brexit talks will bring a huge mess.
EUR/GBP sharply fell in the morning but found support at 0.8720. The increasing buyers interest uplifted the pair to currently trade at 0.8758. As seen on the four hour time frame the price is developing below its bearish 20-day and 100-day SMAs and flat 200-day SMA. RSI is at 43 and has started to turn north. Stochastic is yet located within extreme overbought area but is showing good upward momentum. Nevertheless the upside is capped by the 0.8833 level – 23.6% Fibonacci retracement of latest bullish run and the current location of the flat 200-day SMA. Bulls has tried to conquer this level twice this year, but unsuccessfully, so in the short term I see them fail again.  

Key support is provided by the double low around 0.86875 and Fibonacci retracement level . A breach would open doors to 0.8646 (June 8 low). This scenario would be more reasonable for the pair, because except a weak single currently, the Sterling upside momentum picks up pace.
Another "Super Thursday" is coming next week with BoE’s release on its latest monetary policy and Quarterly Inflation Report (QIR), which may bring additional strength on GBP. 

GBP/USD May and Juncker do not disturb much

GBP/USD rallied today to reach daily high at 1.3538, but the enthusiasm was fleeting as the pair dropped with over 80 pips. Pound bears were awaken following no agreement between UK and EU. The European Commission President Jean-Claude Juncker is still confident about an agreement that might be reached ahead of December 15th summit. And according to PM May, both sides are giving their best and are in good faith, so the progress has been made and there is common understanding on lots of issues.

From technical point of view, the pair is moving well above its 100-day and 200-day SMAs, that are keeping bullish stance, while the 20-day SMA, also bullish, is just two pips above the current price. Stochastic has retreated from the extreme negative territory and is displaying strong bullish momentum. RSI is located around its mid-line and seems that has lost directional strength. 

The GBP/USD is favoring a new leg higher if breaks the 1.3505 level and then on focus will be 1.3550. On the other hand, the pair remains vulnerable around 1.3420 area and in case bears fight it, next target will be 1.3380.