- EUR/GBP failed to break past major trendline resistance at 0.8910, extends retrace for 2nd consecutive session.
- The pair has slipped below 200-DMA and daily cloud and is currently hovering around 23.6% Fib at 0.8833.
- The pair is trading in a narrow range, with a day's high at 0.8841 and a low at 0.8823.
- The pair is trading in a symmetric triangle pattern and 20-DMA at 0.8808 offers strong support, break below could see extension of weakness.
- RSI has turned south and Stochs are showing retrace from near overbought levels.
- Technical studies still support upside in the pair. Breakout at 0.8910 could negate bearish bias. Scope then for upside till 0.90 levels.
Support levels - 0.8808 (20-DMA), 0.8716 (Feb 1 low), 0.8686 (Jan 25 low)
Resistance levels - 0.8842 (5-DMA), 0.8859 (nearly converged cloud and 200-DMA), 0.89 (trendline)
Recommendation: Watch out for break below 20-DMA for extension of weakness. Target 0.8720/ 0.8690.
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