- EUR/GBP was rejected at major trendline resistance at 0.89 on Wednesday's trade.
- The pair slumped lower on rally of the pound with no particular catalyst behind.
- Price action closed below major support at 200-DMA at 0.8831 in the previous session.
- The pair is attempting minor recovery but upside seems to lack traction. 200-DMA is now strong resistance.
- UK retail sales scheduled for release on Friday will provide further cues on direction.
- Break below 0.88 handle will see test of major trendline support at 0.8755. Violation there will see further weakness.
Support levels - 0.88, 0.8755 (trendline), 0.8682 (61.8% Fib retrace of 0.8297 to 0.9306 rally)
Resistance levels - 0.8832 (200-DMA), 0.8859 (5-DMA), 0.8887 (100-DMA)
Recommendation: Watch out for break below 0.88 handle, target 0.8755.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -55.1155 (Neutral), while Hourly GBP Spot Index was at 92.2425 (Bullish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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