- EUR/GBP rejected at session highs at 0.8976, intraday bias lower.
- We evidence formation of 'Gravestone Doji' formation at highs.
- On the hourly charts, the pair has broken below 50-SMA and technical indicators support downside.
- We note bearish divergence on RSI and Stochs and ADX support downtrend.
- 5-DMA at 0.8916 is immediate support on the downside, break below will see further weakness.
- On the flipside, we see bearish invalidation on break above 50-DMA at 0.9019.
Support levels - 0.8916 (5-DMA), 0.8906 (1H 100-SMA), 0.8860 (20-DMA)
Resistance levels - 0.8992 (Oct 6 high), 0.9019 (50-DMA), 0.9046 (Sept 14 high)
Recommendation: Good to short rallies around 0.8950/60, SL: 0.90, TP: 0.8915/ 0.89/ 0.8860
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
