FxWirePro: EUR/GBP slumps to 1-1/2 year lows, further weakness on charts

EUR/GBP chart on Trading View used for analysis

• EUR/GBP exxtends weakness for the 4th straight week, slumps to 1 and 1/2 year low.
   
• British pound buoyed following reports that the Northern Irish Democratic Unionist Party (DUP) decided to privately agree to support UK PM May’s ‘Plan B’ Brexit Deal.
   
• Bears strongly in control as EUR/GBP is trading well below its main Moving Averages.
   
• Technical studies are bearish. Scope for test of 38.2% Fib at 0.8398.
   
• Brexit reports will continue to underpin the sentiment around the major.
   
• Focus on UK BBA mortgage approvals and CBI realized sales data for further impetus.

Support levels - 0.8620 (Apr 2018 low), 0.8398 (38.2% Fib)

Resistance levels - 0.87, 0.8713 (5-DMA), 0.8862 (200-DMA) 

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.