- EUR/GBP recovery attempts were capped at daily cloud which offers strong resistance at 0.8845.
- Upside today remains capped at 5-DMA at 0.8806, price action down 0.06% as we write.
- Technical indicators are biased lower. RSI weak below 50 and biased south. Momentum studies highly bearish.
- We see -ve DMI dominance and MACD is showing a bearish crossover on signal line.
- The pair is trading in a downward sloping channel and we see next major support at 61.8% Fib at 0.8682 ahead of channel base at 0.8630.
- 200-DMA is major resistance at 0.8881, break above could test channel top at 0.89. Break out at channel top negates bearish bias.
Support levels - 0.8732 (Feb 8 low), 0.8682 (61.8% Fib retrace of 0.8297 to 0.9306 rally), 0.8630 (channel base)
Resistance levels - 0.8805 (5-DMA), 0.8845 (daily cloud), 0.8881 (200-DMA)
Recommendation: Good to go short on rallies around 0.8790/ 0.88, SL: 0.8845, TP:
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -133.666 (Bearish), while Hourly GBP Spot Index was at 33.6064 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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