FxWirePro: EUR/GBP bounces off 200-DMA, further weakness only on break below

• EUR/GBP has shown a bounce off 200-DMA, is trading 0.31% higher at 0.8826 levels.
   
• Upside finds strong resistance at 20-DMA at 0.8875, bearish invalidation only on break above.
   
• Technicals studies are still bearish, RSI below 50 levels and Stochs are biased lower.
   
• Break below 200-DMA raises scope for test of channel base support at 0.8725.
   
• Violation at channel base could see further weakness, next bear target lies at 61.8% Fib retrace at 0.8682.

Support levels - 0.8795 (200-DMA), 0.8746 (Sept 27 low), 0.8733 (Nov 1 low), 0.8725 (channel base)

Resistance levels - 0.8855 (5-DMA), 0.8875 (20-DMA), 0.89

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-extends-break-below-089-handle-eyes-200-DMA-at-08792-stay-short-1031490) has hit TP1/2.

Recommendation: Book partial profits at lows, trail stop loss to 0.8875, hold for 0.8730/ 0.87/ 0.8685.

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