FxWirePro: EUR/GBP downside bias on bearish RSI divergence and rejection at 100-DMA, stay short

• EUR/GBP upside finds stiff resistance at 100-DMA which the pair is struggling to break on Thursday.
   
• We have evidenced a bearish divergence on RSI on hourly charts.
   
• The pair has failed to hold above hourly 100-SMA and spinning top formation seen on the previous hour candle.
   
• Strong support at 0.8540 (5-DMA and trendline on hourlies), break below will see drag upto 0.85.
   
• Technical indicators on hourlies support downside, Stochs have rolled over from overbought and RSI biased lower.
   
• Strong support at 0.8540 (5-DMA and trendline on hourlies), break below will see drag upto 0.85.
   
• Violation at 0.85 levels could see test of 0.8465 (trendline)

Support levels - 0.8540 (5-DMA and trendline on hourlies), 0.8522 (61.8% Fib retrace of 0.8481 to 0.85886 rally), 0.85, 0.8465 (trendline)

Resistance levels - 0.8561 (1H 50-SMA), 0.86, 0.8641 (20-DMA)

Recommendation: Good to short on rallies around 0.8550/55, SL: 0.8590, TP: 0.8530/ 0.85/ 0.8465

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 26.2526(Neutral), while Hourly GBP Spot Index was at 13.4534 (Neutral) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.