FxWirePro: EUR/GBP holds support at 55-W EMA (0.8855), break below required for further downside

EUR/GBP chart on Trading View used for analysis

• EUR/GBP is trading largely unchanged on the day at 0.8872 at 0425 GMT.
   
• The pair is holding support at 55-W EMA at 0.8855, break below required for further weakness.
   
• We also see strong support at 200-DMA at 0.8860. Decisive close below to see further downside.
   
• Technical studies support weakness in the pair. RSI is below 50 and Stochs are sharply lower.
   
• MACD also supports downside in the pair. Bollinger bands are widening suggesting rise in volatility.
   
• Break below 200-DMA finds next major support at 61.8% Fib at 0.8824.
   
• On the flipside, bounce off 200-DMA finds immediate resistance at 5-DMA at 0.8920. Break above 20-DMA to see further upside.

Support levels - 0.8860 (200-DMA), 0.8855 (55-W EMA), 0.8824 (61.8% Fib)

Resistance levels - 0.8875 (50% Fib), 0.8920 (5-DMA), 0.8980 (20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-ignores-Doji-formation-at-50-DMA-eyes-200-DMA-at-08859-stay-short-on-upticks-1484314) has hit TP1/2.

Recommendation: Book partial profits at lows. Watch out for break below 0.8855 for further weakness.

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