FxWirePro: EUR/GBP eases below 0.8400, faces resistance at 21-DMA
The euro declined against the British pound amid growing expectations that the new UK finance minister will announce more spending at next month’s budget. However, the downside appears limited as ongoing worries about Br…
The euro declined against the British pound amid growing expectations that the new UK finance minister will announce more spending at next month’s budget.
However, the downside appears limited as ongoing worries about Britain’s trade negotiations with the European Union dented the bid tone around the British currency.
EUR/GBP is trading 0.3 percent down at 0.8364, having hit a high 0.8415 on Thursday, its highest since February 13.
The pair faces major resistance at 21-DMA.
Momentum indicators are bearish: RSI weak at 43, MACD supports downside and Stochs indicate a bearish crossover.
Immediate resistance is located at 0.8408 (21-DMA), a break above could take it near 0.8415.
On the downside, support is seen at 0.8356 (5-DMA), a break below could drag it till 0.8343.
Recommendation: Good to sell on rallies around 0.8385, with stop loss of 0.8408 and target price of 0.8343.
