- EUR/GBP extends choppy trade below 100-DMA, down 0.35% on the day trading at 0.8871.
- The pair was rejected at 50-DMA in previous week's trade and is extending downside.
- Bias still bearish, Stochs have turned lower from near overbought levels and RSI has fallen below 50.
- We see scope for test of minor trendline support at 0.88. Further weakness on break below.
- On the flipside, break above 50-DMA at 0.9008 could see bearish invalidation.
Support levels - 0.88 (trendline), 0.8742 (200-DMA), 0.8719 (June 16 low), 0.8682 (61.8% Fib retrace of 0.8297 to 0.9306 rally)
Resistance levels - 0.8919 (5-DMA), 0.8922 (100-DMA), 0.9068 (23.6% Fib)
Call update: We advised a short in our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-breaks-100-DMA-support-bias-lower-good-to-short-rallies-951953).
Recommendation: Bias lower, hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -129.676 (Bearish), while Hourly GBP Spot Index was at 64.0863 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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