FxWirePro: EUR/GBP breaks 'Symmetric Triangle' pattern, hovers around 61.8% Fib, bias lower

• EUR/GBP trades in a narrow range, consolidates previous sessions downside, bias still bearish.
   
• The pair has shown a breakout of 'Symmetric Triangle' pattern and has breached major support at 0.8765 ('Triangle Base').
   
• Scope now for extension of downside. Price action currently hovers around 61.8% Fib at 0.8682.
   
• Technical studies are bearish. We see -ve DMI dominance and ADX has edged above 20 levels. RSI and Stochs are heavily bearish.
   
• Next major support below 61.8% Fib lies at 0.86 ahead of 0.8513 (78.6% Fib).
   
• On the upside, retrace and close above Triangle base could see test of 200-DMA at 0.8840. Violation at 200-DMA will see bearish invalidation.

Support levels - 0.8682 (61.8% Fib retrace of 0.8297 to 0.9306 rally), 0.8655 (May 30 low), 0.86, 0.8513 (78.6% Fib)

Resistance levels - 0.8755 (5-DMA), 0.8765 ('Triangle Base'), 0.88, 0.8840 (200-DMA)

Call update: Our previous call has hit TP1.

Recommendation: Bias lower, stay short for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 25.6399 (Neutral), while Hourly GBP Spot Index was at 95.1408 (Bullish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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