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FxWirePro: EUR/GBP recovery capped at daily cloud, scope for downside resumption

EUR/GBP chart - Trading View 

Technical Analysis: Bias Bearish

- Recovery attempts capped at daily cloud 

- Momentum indicators have turned bearish, RSI has slipped below 50

- The pair is extending weakness for the 4th straight week

- GMMA indicator shows major and minor trend are bearish on the daily and weekly charts

- Price action is below major MAs, MACD and ADX support downside in the pair

Support levels - 0.8560 (76.8% Fib), 0.8495 (Trendline), 0.8440 (Lower W BB)

Resistance levels - 0.8606 (200H MA), 0.8637 (20-DMA), 0.8646 (55-EMA)

Summary: Upbeat UK Retail Sales and mixed UK PMI prints provide some support to the British pound. Pullback from multi-week lows has been capped at daily cloud. Technical indicators are turning bearish and the pair is on track to test 76.8% Fib at 0.8560 ahead of trendline support at 0.8495. Bearish invalidation only above daily cloud.
 

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