EUR/GBP chart - Trading View
Technical Analysis: Bias Bearish
- EUR/GBP trades 0.36% lower at 0.8884 at around 10:45 GMT,
- Price action is extending break below 200-DMA, recovery attempts capped at 5-DMA
- Stochs and RSI are sharply lower and RSI is well below the 50 mark
- MACD supports weakness, ADX is rising in support of the downtrend
- GMMA shows major and minor trend are strongly bearish
- Volatility is rising as evidenced by widening Bollinger bands
Support levels - 0.8865 (trendline support), 0.8815 (200W MA), 0.8670 (Apr 30 low)
Resistance levels - 0.8913 (5W EMA), 0.8926 (5-DMA), 0.8945 (200-DMA)
Summary: The British pound got a strong boost following the release of upbeat UK PMI prints. UK Manufacturing PMI unexpectedly jumped to 55.2 in November, beating consensus estimates pointing to a fall to 50.5 and compared to 53.7 in the previous month. The cross has shown decisive break below 200-DMA which could drag prices lower. Next major support lies at 0.8815 (200W MA). Retrace above 200-DMA will negate bearish bias.
