In both instances, the trends for EUR/USD and EUR/GBP remain lower. However, in the very near term, the messages are diverging.
EUR/USD risks a squeeze higher to 1.1211, potentially 1.1389, while EUR/GBP looks to be topping now following its break of 2wk trendline (now 0.7300) and old support at 0.7304/0.7295. Given these divergences we remain on the sidelines waiting for these two pairs to confirm one another.
Either EUR/USD needs to break 1.0613 (the Mar-19 low) to confirm a resumption of the larger bear trend, or EUR/GBP needs to break 0.7334 to say that the corrective environment remains.
