- EUR/GBP has failed to hold break below 100-DMA at 0.8555, has edged higher to currently trade at 0.8567.
- The pair is extending declines after rejection at major trendline resistance at 0.8780.
- Price action has broken into daily Ichi cloud and 200-DMA at 0.8582, which is now strong resistance on the upside.
- Technicals are bearish, break below 100-DMA at 0.8555 will see further drag.
- Cloud base at 0.8519 is immediate support. Violation there could see test of trendline at 0.8455.
Support levels - 0.8555 (100-DMA), 0.8493 (Feb 9 low), 0.8455 (trendline)
Resistance levels - 0.8582 (200-DMA), 0.8586 (50-DMA), 0.86, 0.8624 (5-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-capped-below-5-DMA-good-to-go-short-on-rallies-598529) has achieved all targets.
Recommendation: Book full profits at lows. Good to enter fresh shorts on break below 100-DMA, targets 0.8455.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -94.5543(Bearish), while Hourly GBP Spot Index was at -12.3233 (Neutral) at 0650 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
