FxWirePro: EUR/GPB extends grind below 5-DMA, bias lower, next bear target at channel base (0.8675)

• EUR/GBP is extending grind below 5-DMA, intraday bias bearish.
   
• Dismal Eurozone Sentix figures weigh further on the EUR, dragging the pair lower.
   
• The Eurozone Sentix Investor Confidence came out at 19.6 points, missing expectations at 20.8.
   
• Technical indicators are also supporting further downside in the pair.
   
• RSI and Stochs are biased lower and we see -ve DMI dominance.
   
• Next bear target lies at channel base at 0.8675. Violation there could see further weakness.
   
• On the flipside, 20-DMA at 0.8763 strong resistance. Breakout at 50-DMA invalidates bearish bias.

Support levels - 0.8682 (61.8% Fib), 0.8675 (channel base), 0.86

Resistance levels - 0.8720 (5-DMA), 0.8763 (20-DMA), 0.88 (50% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-breaks-below-5-DMA-eyes-channel-base-at-08675-stay-short-1233011) has hit TP1.

Recommendation: Bias lower, hold for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 26.492 (Neutral), while Hourly GBP Spot Index was at 106.043 (Bullish) at 0910 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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