FxWirePro: EUR/GBP hits 4 1/2 month lows, finds strong support at 200-DMA

• Euro depressed across the board after the Italy rejected constitutional reform in a referendum vote.
   
• The pair finds strong support by 200-DMA at 0.8277, weakness likely on break below.
   
• Bond markets in Germany likely priced in a ‘no vote’ as was evidenced by drop in German bond yields over the last month despite the global bond market sell-off. 
   
• Focus remains on German bunds yields, we could see a recovery in euro if German yields edge higher.
   
• UK service PMI data along with UK Supreme Court hearing on PM May’s challenge to overturn high court ruling will also be in focus.
   
• Technical studies support downside in the pair. Momentum studies bearish. 
   
• Support levels - 0.8277 (200-DMA), 0.8248 (July 14 low), 0.82 (June 29 low)
   
• Resistance levels - 0.84, 0.8428 (5-DMA), 0.8480 (trendline), 0.85, 0.8552 (20-DMA)
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Recommendation: Short break below 200-DMA 0.8277, SL: 0.84, TP: 0.8250/ 0.82/ 0.8175