FxWirePro: EUR/GBP breaks below 5-DMA, eyes channel base at 0.8675, stay short

• EUR/GBP extends weakness below 5-DMA, trades 0.09% lower on the day.
   
• Mixed releases of the Euro area final manufacturing PMI reports earlier today weighed down on the EUR.
   
• Technical studies are biased lower and we see scope for further downside.
   
• Next major support on the downside aligns at 0.8675 (channel base). Breach at channel base could see further weakness.
   
• On the flipside, 20-DMA at 0.8800 is immediate resistance. Break above could see minor upside.

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

Resistance levels - 0.8761 (5-DMA), 0.88 (20-DMA), 0.8820 (50-DMA)

Recommendation: Good to go short around 0.8755/60, SL: 0.88, TP: 0.87/ 0.8680/ 0.86

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -104.098 (Bearish), while Hourly GBP Spot Index was at 0.641108 (Neutral) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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