FxWirePro: EUR/GBP holds cloud support, good to go short on break below

EUR/GBP chart on Trading View used for analysis 

• EUR/GBP recovery fails to hold break above 50-DMA. Pair slips lower from session highs at 0.8937.
   
• Currently the pair is trading 0.10% lower at 0.8889, bias bearish.
   
• Price action is holding support at daily cloud, break below will see extension of weakness.
   
• Technical studies are highly bearish. Stochs and RSI are sharply lower and MACD and DMI support downtrend.
   
• Further pound buoyed by upbeat UK labour market data ahead of BoE policy meeting on Thursday.
   
• Break below cloud top will see test of trendline support at 0.8860 ahead of 61.8% Fib at 0.8803

Support levels - 0.8887 (cloud top), 0.8860 (trendline), 0.8803 (61.8% Fib)

Resistance levels - 0.89, 0.8916 (38.2% Fib), 0.8929 (50-DMA)

Recommendation: Good to go short on break below cloud top, SL: 0.8930, TP: 0.8860/ 0.88

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -72.8885 (Neutral), while Hourly GBP Spot Index was at 109.985 (Bullish) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.