FxWirePro: EUR/GBP hits new 10-week lows at 0.8688, bias bearish

EUR/GBP chart on Trading View used for analysis

• EUR/GBP is on track to close in the red for the 4th straight week, bias bearish.
   
• The pair is trading 0.11% lower on the day at 0.8696 at 1100 GMT.
   
• Price action has hit new 10-week lows at 0.8688, has slipped below 23.6% Fib.
   
• Technical studies are bearish. Scope for test of 38.2% Fib at 0.8698.
   
• Brexit optimism is supporting the Sterling, but political uncertainty will at some stage, cap the rally in GBP.
   
• Technicals for now are biased lower. We advise trade with tight stop loss.

Support levels - 0.8620 (Apr 2018 low), 0.8398 (38.2% Fib)

Resistance levels - 0.8762 (5-DMA), 0.8863 (200-DMA)

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