- EUR/GBP rebounded from the 0.8800 level on hawkish ECB headlines.
- A Bloomberg report, citing sources noted that some ECB members see a rate hike at the end of 2019 as too late.
- The major hit highs of 0.8841 before bears quickly faded the spike.
- Persistent uncertainties over Brexit talks keeps pressure on, but technically, break below 200-DMA has raised scope for further weakness.
- Technical indicators are turning bearish on intraday charts. 5-DMA has turned lower. Stochs are on verge of rollover from overbought levels.
- Next major support lies at 110-EMA at 0.8792. Violation at 110-EMA could see further weakness till major trendline support at 0.8755.
- On the flipside, retrace above 200-DMA could see some consolidation. Break above 38.2% Fib at 0.8882 could see resumption of upside.
Support levels - 0.88, 0.8792 (110-EMA), 0.8755 (trendline)
Resistance levels - 0.8819 (200-DMA), 0.8833 (5-DMA), 0.8882 (38.2% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 31.2622 (Neutral), while Hourly GBP Spot Index was at 72.5513 (Neutral) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
