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FxWirePro: EUR/GBP rejected at session highs at 0.8976, slips below 1H 50-SMA, good to short rallies

  • 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

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