EUR/GBP has been declining for two days since Wednesday afternoon, but today we are seeing a pullback higher. This forex pair has been retracing higher from the 100 smooth MA (red) to the 50 and 100 simple MAs.

These two moving averages are now providing resistance. Although, they have been pierced a few times earlier today. This pullback higher came during the GBP tumble this morning for which there was no apparent reason, but that decline has now stopped.

Is the next leg of the downtrend coming after the retrace higher to the moving averages?   

So, I think that the retrace is almost over. The two moving averages are providing some resistance while the stochastic indicator is overbought on the hourly EUR/GBP chart. This means that the H1 chart is overbought.

Besides that, GBP/USD has reached a number of moving averages on the H1 and H4 charts. They are providing strong support as the price has already turned higher. The H4 EUR/GBP chart is headed up, but the daily forex chart is headed lower, so the downside wins in this technical analysis, hence the sell signal.