- EUR/GBP has retraced break above channel top, slips lower to break 21-EMA support.
- Technical indicators are biased lower. RSI sharply lower, holds below 50 levels.
- Momentum studies are weak. Stochs point south and MACD is showing a bearish crossover on signal line.
- Price action is currently holding support at 50-DMA at 0.8841, break below will accentuate weakness.
- Break below 50-DMA raises scope for test of 61.8% Fib retrace of 0.8297 to 0.9306 rally at 0.8682.
- On the flipside decisive breakout above channel top would invalidate bearish bias.
Support levels - 0.8841 (50-DMA), 0.8834 (cloud base), 0.88 (50% Fib retrace of 0.8297 to 0.9306 rally), 0.8682 (61.8% Fib)
Resistance levels - 0.8866 (converged 5-DMA and 21-EMA), 0.89, 0.8920 (38.2% Fib)
Recommendation: Stay short below 50-DMA, SL: 0.8875, TP: 0.88/ 0.8770/ 0.8685.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 51.6412 (Neutral), while Hourly GBP Spot Index was at 115.095 (Bullish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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