FxWirePro: EUR/GBP breaks below 200-DMA, eyes 78.6% Fib at 0.8723, good to go short on upticks

EUR/GBP chart on Trading View used for analysis

• EUR/GBP has slumped below 200-DMA and is extending weakness below.
   
• Recovery attempts in the pair have been rejected at highs with a gravestone doji formation which suggesting selling pressure at highs.
   
• Price action below major EMAs which are sloping downward in support of further weakness.
   
• Stochs and RSI are sharply lower with MACD and DMI supporting downside.
   
• Bollinger Bands are widening which shows rising volatility. We see scope for weakness.
   
• Next major support lies at 78.6% Fib at 0.8722. Break there could see further downside.

Support levels - 0.8722 (78.6% Fib), 0.87, 0.8675 (88.6% Fib)

Resistance levels - 0.8807 (5-DMA), 0.8837 (200-DMA), 0.8880 (110-EMA)

Recommendation: Good to go short on upticks, SL: 0.8840, TP: 0.8725/ 0.87/ 0.8675

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -103.319 (Bearish), while Hourly GBP Spot Index was at 102.561 (Bullish) at 0715 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.