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FxWirePro: EUR/GBP slips below 38.2% Fib, momentum bearish

  • Given higher odds of a "Remain" outcome in the EU Referendum (of 77%), GBP to remain buoyed near-term.
     
  • Very strong retail sales data for April for the UK released on Thursday also to support the Pound.
     
  • The ECB meeting accounts revealed the Governing Council is strongly committed to revive inflation to the 2% target in the Eurozone.
     
  • EUR/GBP trades with a major bearish bias on the weekly and monthly charts.
     
  • On the dailies the pair has broken below 38.2% Fib level at 0.7683 and hit lows of 0.7648 on Thursday's trade.
     
  • The pair is currently staging a slight recovery, but remains below 38.2% Fib levels. Immediate resistance and support are now located at 0.7683 (38.2% Fib) and 0.7652 (Mar 10th lows).
     
  • Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-downside-stalls-at-382-Fib-break-below-needed-for-further-downside-210124) has hit TP1.

Recommendation: Book partial profits, place stops at 0.7725, hold for further downside. 
 

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