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FxWirePro: EUR/GBP rejected at 200-DMA, extends weakness for the 3rd straight session

EUR/GBP chart - Trading View EUR/GBP was trading 0.07% lower on the day at 0.8550 at around 10:50 GMT, slips lower from session highs at 0.8573. Sterling licking wounds after a sharp drawdown last week when traders shrug…

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FxWirePro: EUR/GBP rejected at 200-DMA, extends weakness for the 3rd straight session
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EUR/GBP chart - Trading View 

EUR/GBP was trading 0.07% lower on the day at 0.8550 at around 10:50 GMT, slips lower from session highs at 0.8573.

Sterling licking wounds after a sharp drawdown last week when traders shrugged off hawkish central bank rhetoric.

Focus remains on a sour outlook and the risk of both higher rates and inflation along with new Brexit concerns. 

Chief UK Negotiator Frost is set to take a tough stance against the EU on the Northern Irish Protocol, keeping pound depressed.

Technical indicators are turning bearish. Price action was rejected at 200-DMA and the pair is extending weakness for the 3rd straight session.

RSI has slipped below the 50 mark and is biased lower. Stochs are showing a bearish rollover from near overbought levels.

Breach below cloud will drag the pair lower. Scope for test of major trendline support at 0.8465. Bearish invalidation only above 200-DMA.
 

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