EUR/GBP breaks below 50-DMA, dip till 61.8% Fib at 0.8682 likely
EUR/GBP on track to close in the red for a 2nd consecutive week.
The pair has broken support at 50-DMA at 0.8839, raising scope for further downside.
EUR dented after top ECB policymakers this week said they would end the stimulus only after inflation shows a sustained rise towards the 2 percent inflation target.
Technical indicators are biased lower. RSI sharply lower, holds below 50 levels.
Momentum studies are weak. Stochs point south and MACD is showing a bearish crossover on signal line.
Break below 50-DMA raises scope for test of 61.8% Fib retrace of 0.8297 to 0.9306 rally at 0.8682.
On the flipside decisive breakout above channel top would invalidate bearish bias.
Support levels - 0.8811 (cloud base), 0.88 (50% Fib retrace of 0.8297 to 0.9306 rally), 0.8682 (61.8% Fib)
Resistance levels - 0.8839 (50-DMA), 0.8851 (5-DMA), 0.8890 (channel top), 0.8920 (38.2% Fib)
Stay short below 0.8810, SL: 0.8875, TP: 0.8770/ 0.8685
The pair has broken support at 50-DMA at 0.8839, raising scope for further downside.
EUR dented after top ECB policymakers this week said they would end the stimulus only after inflation shows a sustained rise towards the 2 percent inflation target.
Technical indicators are biased lower. RSI sharply lower, holds below 50 levels.
Momentum studies are weak. Stochs point south and MACD is showing a bearish crossover on signal line.
Break below 50-DMA raises scope for test of 61.8% Fib retrace of 0.8297 to 0.9306 rally at 0.8682.
On the flipside decisive breakout above channel top would invalidate bearish bias.
Support levels - 0.8811 (cloud base), 0.88 (50% Fib retrace of 0.8297 to 0.9306 rally), 0.8682 (61.8% Fib)
Resistance levels - 0.8839 (50-DMA), 0.8851 (5-DMA), 0.8890 (channel top), 0.8920 (38.2% Fib)
Stay short below 0.8810, SL: 0.8875, TP: 0.8770/ 0.8685
Downside pressure intact.
TP1 hit. Bias lower.