- EUR/GBP trades a narrow 20 pip range as we head into the European session.
- Focus remains on Eurozone PMI data due ahead, any miss on expectations could raise scope for ECB easing at Dec meeting.
- 20-DMA at 0.8871 is immediate support on the downside. Break below will see drag upto 0.8825 (trendline).
- Technical indicators support downside in the pair. Violation at trendline could see test of 50-DMA at 0.8667.
- Major support levels - 0.8871 (20-DMA), 0.8827 (Oct 7 low & trendline), 0.8666 (50-DMA)
- Major resistance levels - 0.8913 (5-DMA), 0.8975 (trendline), 0.90, 0.9026 (Oct 20 high)
Recommendation: Good to go short on break below 20-DMA at 0.8871, SL: 0.8915, TP: 0.8830/ 0.88/ 0.8775/ 0.87
