- EUR/GBP fails to hold above 0.93 handle, slips lower to trade at 0.9243 at the time of writing.
- Formation of Gravestone Doji at highs raises scope for downside in the pair.
- 5-DMA at 0.9249 is immediate support, close below could see drag upto 20-DMA at 0.9136.
- Stochastic and RSI are in overbought zone, rollover will add to bearish bias.
- Violation at 20-DMA finds next major support at 0.9088 (23.6% Fib retrace of 0.83822 to 0.93064 rally).
- On the upside, the pair finds major trendline resistance at 0.9310. We see upside only on break above.
Support levels - 0.92, 0.9136 (20-DMA), 0.91, 0.9088 (23.6% Fib retrace of 0.83822 to 0.93064 rally)
Resistance levels - 0.9310 (Trendline resistance), 0.94, 0.9411 (Oct 2009 high), 0.9477 (88.6% Fib retrace of 0.9804 to 0.6930 fall)
Recommendation: Good to go short on close below 5-DMA, SL: 0.9310, TP: 0.92/ 0.9140/ 0.91/ 0.90
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 51.619(Neutral), while Hourly GBP Spot Index was at 121.628 (Bullish) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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