- EUR/GBP consolidates break below 200-DMA, trades in a narrow range.
- The pair is trading in 'Symmetric Triangle' pattern and finds major support at 0.8765 ('Triangle Base').
- Breach at 0.8765 could see extension of downside. Next major support lies at 61.8% Fib at 0.8682.
- On the upside 200-DMA is stiff resistance and we see any upside only on decisive close above.
- Technical studies are bearish. We see -ve DMI dominance and ADX has edged above 20 levels.
Support levels - 0.8765 ('Triangle Base'), 0.8682 (61.8% Fib retrace of 0.8297 to 0.9306 rally), 0.8655 (May 30 low)
Resistance levels - 0.8790 (5-DMA), 0.8839 (200-DMA), 0.8871 (100-DMA)
Recommendation: Good to go short on decisive close below 0.8765, SL: 0.88, TP: 0.87/ 0.8680/ 0.8655.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -15.5126 (Neutral), while Hourly GBP Spot Index was at 116.885 (Bullish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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