FxWirePro: Cloud caps upside in EUR/GBP, good to go short on break below 20-DMA at 0.8891
EUR/GBP extends decline after rejection at daily cloud, bias slightly bearish. The pair has slipped below 5-DMA 0.8938 and is trading a narrow range on the day. Focus remains on EZ consumer confidence, German October man…
EUR/GBP extends decline after rejection at daily cloud, bias slightly bearish.
The pair has slipped below 5-DMA 0.8938 and is trading a narrow range on the day.
Focus remains on EZ consumer confidence, German October manufacturing PMI and ECB policy rate decision for further impetus.
Technical studies have turned slightly bearish, RSI has fallen below 50 levels and Stochs are biased lower.
20-DMA at 0.8892 offers strong support, break below will accentuate weakness. Scope then for test of 200-DMA at 0.8748.
On the flipside, we see upside only on break above daily cloud at 0.9025.
Recommendation: Watch out for break below 20-DMA to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 10.7931 (Neutral), while Hourly GBP Spot Index was at 48.1729 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
