FxWirePro: EUR/GBP breaks below channel base, further downside likely on decisive close below
EUR/GBP broke below 0.7330 support in Tuesday's trade and closed at 0.7322, but has since bounced off from lows. The pair is attempting a recovery onto the channel base at 0.7338 on the day, but was relected at highs by …
EUR/GBP broke below 0.7330 support in Tuesday's trade and closed at 0.7322, but has since bounced off from lows.
The pair is attempting a recovery onto the channel base at 0.7338 on the day, but was relected at highs by 0.7344 and is currently trading at 0.7332.
Decisive break below 0.7330 will find the pair by next support at 0.7275 (Dec 20 lows) and further below at 0.7255 (38.2% Fib of 0.69841 to 0.7346 rise).
On the other side, if the pair manages to close above rising channel base at 0.7338, retracements upto 0.7388 (Dec 30 highs) and then 0.74 levels likely.
Pair finds immediate support at 0.7320 (23.6 % Fib of 0.69841 to 0.7346 rise) and resistance at 0.7338 (rising channel base).
Markets await Euro zone PPI data due ahead for further cues after Eurozone Dec CPI data disappointed yesterday.
