Last week, EUR/GBP fell from around 0.80 to 0.7813. Then it consolidated and apparently formed a kilroy or inverted head and shoulders pattern. As we get started with the 12/23 US session, it has broken above the neckline signaling a possible bullish correction/reversal in the short-term. (EUR/GBP 1H Chart 12/23) The 1H chart shows price also pushing above the 100- and 50-hour SMAs while the 1H RSI pushes above 60, showing loss of the prevailing bearish momentum from last week. Now, the 0.7835-0.7840 area has become critical in the short-term, for holding the integrity of the mini price bottom. EUR/GBP would be bullish towards 0.79 and possibly back towards 0.80 if it can hold above 0.7835. The 0.79 could become important. We can see that the 200-hour SMA resides around here, but it is also important from a medium-term perspective. Let's take a look at the daily chart for the medium-term outlook: (EUR/GBP Daily Chart 12/23) The daily chart shows that the EUR/GBP has been consolidating since September. While there is a slight coiling, the pair is essentially ranging between 0.7767 and 0.8065. Now, back to the 0.79 level. We can see that if price holds below 0.79, it will hold below the 200-, 100-, and 50-day SMAs, and respect the middle of the consolidation range. This would keep a bearish bias in the medium-term, and put pressure on the 0.7770-0.78 lows from the range. After months of choppy consolidation, a break below 0.7765 should be a strong bearish signal and be followed with significant extension downwards.