FxWirePro: EUR/GBP rejected at cloud base, test of 0.7041 likely

EUR/GBP was rejected at cloud base by 0.7196 on Friday. The pair has retraced from 0.7196 levels, was modestly bid in Asia, 0.7126 - 0.7146 range and is currently trading at 0.7141.

• Techs continue to suggest that cloud base/100 DMA will stem further rises, pair has broken below 10 DMA at 0.7141, suggest further downside for now, test of 0.7041 (Nov 5th lows) likely
   
• The pair has immediate resistance at 0.7196 (Daily Cloud Base) and support on the downside at 0.7108 (Daily Low Nov 8)

Recommendation: Good to sell rallies around 0.7140/50, SL: 0.72, TP: 0.7045

Resistance Levels: 

R3: 0.7205 (100 DMA)

R2: 0.7199 (Daily High Oct 30)

R1: 0.7196 (Daily Cloud Base)

Support Levels:

S1: 0.7108 (Daily Low Nov 8)

S2: 0.7043 (11 Wk Low Nov 5)

S3: 0.7027 (Daily Low Aug 18)