- EUR/GBP down 0.38% on the day, extending downside for 4th consecutive session.
- The pair is currently holding support at 200-DMA at 0.8793, we see weakness on break below.
- Break below 200-DMA raises scope for test of channel base support at 0.8725.
- Technical studies support downside in the pair, RSI and Stochs sharply lower.
- Violation at channel base could see further weakness, next bear target lies at 61.8% Fib retrace at 0.8682.
- Immediate resistance is seen at 20-DMA at 0.8877, break above invalidates our bearish bias.
Support levels - 0.8746 (Sept 27 low), 0.8733 (Nov 1 low), 0.8725 (channel base)
Resistance levels - 0.8793 (200-DMA), 0.8805 (50% Fib), 0.8876 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-extends-break-below-089-handle-eyes-200-DMA-at-08792-stay-short-1031490) has hit TP1/2.
Recommendation: Book partial profits at lows, trail stop loss to 0.8875, hold for 0.8730/ 0.87/ 0.8685.
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