- EUR/GBP is extending weakness after upside was capped short at Triangle Top.
- The pair has slipped below 50-DMA which is stiff resistance at 0.8761.
- Technical indicators are biased lower. RSI below 50, with further room for weakness.
- Stochs are sharply lower and we see -ve DMI dominance which adds to bearish bias.
- The pair is on track to test 61.8% Fib at 0.8682. Violation there could see test of Triangle base at 0.8655.
- On the upside, break above 50-DMA could see re-test of 0.8835.
Support levels - 0.8682 (61.8% Fib), 0.8655 (Triangle base), 0.8620 (Apr 17 low)
Resistance levels - 0.8761 (50-DMA), 0.8771 (5-DMA), 0.88
Recommendation: Good to go short on rallies around 0.8735/55, SL: 0.8770, TP: 0.8685/ 0.8655.
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