Chart of the day - EURGBP (03.01.2022)

Looking at the daily EURGBP chart, we are dealing with an interesting technical situation. As for the H4 interval, last week the price hit a level not seen since February 2020. However, despite descending below the support zone at 0.8390, buyers quickly regained control. In addition, the aforementioned zone was tested again during today's session, where the hammer candlestick pattern appears, which, according to the classical technical analysis, may signal an upward correction. In such a scenario, nearest major resistance is located at 0.8460 and coincides with 38.2% Fibonacci retracement and previous price reactions. On the other hand, should the break below the support at 0.8390 occur, the sell-off could intensify.

EURGBP interval D1. Source: xStation5