EUR/GBP grinds lower, focus on BoE meet

After hitting multi-week highs at 0.7280 earlier in the week, EUR/GBP has deflated to the current 0.7226 area on selling pressure in the euro and a consolidative pattern in the sterling.

• However, dip today is not supported by volumes, bull signs persist as latest dip repelled by the 100 & 200-DMAs as well as the daily cloud base.
   
• But daily Stochs show a bearish crossover at overbought levels, and daily RSI is also biased lower.
   
• Some correction lower is anticipated, which should provide good entry points. For now expect pair to consolidate before resuming uptrend. 
   
• Around 0.7210 should be good entry levels for a long upto 0.73 levels 0.7296  is 61.8% of 0.7493 - 0.6982 fall.
   
• EUR/GBP is currently trading at 0.7226, with immediate support on the downside at 0.7220 (Dec 8 low) and resistance at 0.7274 (Daily Cloud Top).

Resistance Levels:

R1: 0.7274 (Daily Cloud Top)

R2: 0.7279 (Daily High Dec 8)

R3: 0.7296 (61.8% of 0.7493 - 0.6982 fall)

Support Levels:

S1: 0.7220 (Dec 8 low)

S2: 0.7213 (Daily Cloud Base)

S3: 0.7205 (100 DMA)