FxWirePro: EUR/GBP rejected at 50-DMA, edges lower from session highs at 0.8753

• EUR/GBP recovery was rejected at 50-DMA, the pair slips lower from session highs at 0.8753.
   
• Daily cloud weighs heavily on the upside and we see further gains only on break above.
   
• The major is extending weakness after upside was capped short at Triangle Top.
   
• Technical indicators are biased lower. RSI below 50, with further room for weakness.
   
• Stochs are sharply lower and we see -ve DMI dominance which adds to bearish bias.
   
• The pair is on track to test 61.8% Fib at 0.8682. Violation there could see test of Triangle base at 0.8655.
   
• On the upside, break above 50-DMA could see re-test of 0.8835.

Support levels - 0.8682 (61.8% Fib), 0.8655 (Triangle base), 0.8620 (Apr 17 low)

Resistance levels - 0.8755 (5-DMA), 0.8758 (50-DMA), 0.88

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-breaks-below-50-DMA-good-to-go-short-on-rallies-1317564) is progressing well.

Recommendation: Stay short for further downside.

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