Merrill Lynch signals a bearish break on the EUR/GBP and a great selling opportunity on the EUR/USD

The EUR/ GBP resumed its downward trend after the break of the 0.7174/0.7166 levels, says Merrill Lynch.

"We expect a test and a break of the 11 March low at 0.7014, before a further decline towards 0.6900/0.6800. Bounces should not exceed the high of 19 April at 0.7245", expects Merrill Lynch.

As for the EUR/USD, Merrill Lynch noted that while the range between 1.0500-1.1000 is intact, the correction is increasingly becoming a triangle.

"This is one of our favorite figures, and it should give us the opportunity to sell with a target of 1.0000 once completed," says Merrill Lynch.

"For the moment, we must be patient. Any increase should not exceed the 55-day MA at 1.0967, while a break of 1.1053 would signal a more significant correction than anticipated", advises Merrill Lynch.