The pound strengthened after the UK’s GDP beat expectations in October. The pair has failed to build a support base after it dropped below the major bottom (0.8570) that has been valid since last September. The RSI’s oversold condition led to a limited bounce but might not be enough to save the day as more traders may have switched to the short side. Only a close above 0.8640 would keep the euro bulls in play. Otherwise, a fall below 0.8560 would attract momentum sellers and send the exchange rate to 0.8500.
