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FxWirePro: EUR/GBP finds strong support at daily cloud, good to short break below

GBP is currently under pressure from BOE Deputy Governor Minouche Shafik's comments. Shafik said "Seems likely that further monetary stimulus will be required 'at some point'." EUR/GBP bounced off from lows of 0.8589 to …

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FxWirePro: EUR/GBP finds strong support at daily cloud, good to short break below
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  • GBP is currently under pressure from BOE Deputy Governor Minouche Shafik's comments.
     
  • Shafik said "Seems likely that further monetary stimulus will be required 'at some point'."
     
  • EUR/GBP bounced off from lows of 0.8589 to 0.8619 as GBP extends weakness.
     
  • The pair is extending decline from multi-week highs of 0.8716 (Sept 26), has broken major trendline support at 0.8611, bias remains lower.
     
  • Daily cloud is seen as strong support on the downside, break below could accentuate weakness.
     
  • Firmly bearish technicals favor further downside action. Stochs have rolled over from overbought levels, RSI is biased lower.
     
  • Major support levels - 0.8589 (session low), 0.8578 (cloud top), 0.8560 (trendline), 0.8514 (20-DMA)
     
  • Major resistance levels - 0.86, 0.8625 (session high), 0.8631 (Sept 20 high), 0.8692 (Aug 19 high)
    ​

Recommendation: Good to short break below 0.8575, SL: 0.8625, TP: 0.8515/ 0.85/ 0.8440
 

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