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FxWirePro: EUR/GBP largely unchanged on the day, weakness on break below daily cloud

  • EUR/GBP lacks clarity of direction, trades largely muted on the day. 
     
  • GBP under pressure from BOE Deputy Governor Minouche Shafik's comments.
     
  • The pair is extending decline from multi-week highs of 0.8716 (Sept 26).
     
  • Daily cloud is seen as strong support on the downside, break below could accentuate weakness.
     
  • Major support levels - 0.8589 (Sept 28 low), 0.8559 (cloud top), 0.8522 (20-DMA)
     
  • Major resistance levels - 0.8631 (Sept 20 high), 0.8693 (Sept 27 high), 0.87, 0.8716 (Sept 26 high) 

Recommendation: Good to short break below 0.8559, SL: 0.8625, TP: 0.8515/ 0.85/ 0.8440
 

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