- EUR/GBP consolidates trade below 61.8% Fib, we see further weakness on charts.
- Technical indicators are biased lower, momentum studies are highly bearish.
- RSI is below 50 levels and MACD is well below zero. We also see -ve DMI dominance which adds to bearish bias.
- Price action remains below daily cloud and major moving averages.
- That said, the pair has bounced off lows with dragonfly doji formation which raises scope for upside.
- Next major support lies at 0.8580 (major trendline). Violation there could see further downside till 0.8513 (78.6% Fib).
- On the upside, immediate resistance lies at 0.8685 (5-DMA), break above to see test of 21-EMA at 0.8734.
Support levels - 0.8627(Apr 13 low), 0.86, 0.8580 (trendline)
Resistance levels - 0.8686 (5-DMA), 0.87, 0.8735 (21-EMA)
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 TP1/2.
Recommendation: Watchout for break above 5-DMA for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -34.6568 (Neutral), while Hourly GBP Spot Index was at 103.267 (Bullish) at 0810 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
