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FxWirePro: EUR/GBP holds above 0.87 handle, break below will see further weakness

EUR/GBP downside pauses at 0.87 handle. The pair pared losses from session lows at 0.8707 to close at 0.8724 on Wednesday's trade. The major is trading in a narrow range as markets await EZ PMIs along with UK retail sale…

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FxWirePro: EUR/GBP holds above 0.87 handle, break below will see further weakness
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  • EUR/GBP downside pauses at 0.87 handle. The pair pared losses from session lows at 0.8707 to close at 0.8724 on Wednesday's trade.
     
  • The major is trading in a narrow range as markets await EZ PMIs along with UK retail sales and BoE policy decision.
     
  • Technical indicators support downside in the pair. Price grinding lower in slopping channel pattern.
     
  • RSI is well below 50 levels and momentum studies are bearish. We see -ve DMI dominance and ADX support for the downtrend.
     
  • Bears now target 61.8% Fib at 0.8682. We see bearish invalidation only on retrace above daily cloud.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-finds-support-at-50-DMA-at-08841-break-below-will-see-further-weakness-1203892) has hit TP1/2.

Recommendation: Book partial profits at lows. Hold for further weakness.

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