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The EUR/GBP pair attempted a rally on Tuesday, but was repelled at the former uptrend line of what we thought was a bearish flag. Nonetheless, it is a trend line that has acted as both support and resistance now, and this suggests to us that we are going to see lower prices.
On a break of the Tuesday lows, we would be more than willing to sell this pair and see the 0.7825 level is crucial support. If we can get below that level, we see no reason why we will retest the lows at 0.7750. In fact, based upon several different formations recently, we suspect that the 0.75 level is where this pair is going to head in the near term. As for buying this pair, we simply wouldn't do it but we are more than willing to sell any signs of weakness.