- EUR/GBP is trading in a narrow range below 5-DMA, intraday bias bearish.
- The pair hit session high of 0.8721 and a low of 0.8710 and is currently trading at 0.8712, down 0.07% on the day.
- Price action edges lower in a falling channel pattern and technical indicators are supporting further downside in the pair.
- RSI and Stochs are biased lower and we see -ve DMI dominance.
- Next bear target lies at 61.8% Fibo at 0.8682 ahead of channel base at 0.8670. Violation at channel base could see further weakness.
- On the flipside, 20-DMA at 0.8756 strong resistance. Breakout at 50-DMA invalidates bearish bias.
Support levels - 0.8682 (61.8% Fib), 0.8670 (channel base), 0.86
Resistance levels - 0.8721 (5-DMA), 0.8756 (20-DMA), 0.88 (50% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-breaks-below-5-DMA-eyes-channel-base-at-08675-stay-short-1233011) has hit TP1.
Recommendation: Bias lower, hold for further weakness.
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