FxWirePro: EUR/GBP hits new 4-week lows at 0.8635, bias bearish

EUR/GBP chart on Trading View used for analysis

• EUR/GBP is extending weakness below 55-W EMA, bias remains bearish.
   
• The pair has hit new 4-week lows at 0.8635, before paring some losses to currently trade at 0.8649.
   
• News reports favoring delayed Brexit helped support the pound, weighing on the pair.
   
• Markets now focus on BoE’s inflation report hearings and UK PM May’s statements for further impetus.
   
• Technical studies support further weakness. Stochs and RSI show momentum is bearish.
   
• We see a bearish 5-DMA crossover on 20-DMA and 5-DMA is sharply lower, capping upside in the pair.
   
• Price action below cloud and major moving averages and MACD is showing a bearish crossover on signal line.
   
• We see strong trendline support at 0.8622, violation there could accentuate weakness.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-Trade-Idea-1500681) has hit TP1.

Recommendation: Book partial profits at lows, stay short for further weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.