EURGBP – bears are taking a breather before final break below 200SMA
The cross found footstep after steep four-day fall from 0.8981 week’s high, with bears being so far contained by 200SMA (0.8795) despite brief probes below.
Strength and pace of recent fall suggests corrective action as likely near-term scenario.
Recovery attempts were so far capped at 0.8840 (broken Fibo 61.8% of 0.8732/0.9013 rise)
with strong barrier at 0.8870 (converged 10/20/55SMA’s in attempt to create double bear-cross) expected to cap corrective action.
Widening daily cloud maintains downside pressure (cloud base lies at 0.8906) for final break through 200SMA and extension towards key support at 0.8732 (01 Nov multi-month low).
Res: 0.8840; 0.8870; 0.8884; 0.8906
Sup: 0.8795; 0.8776; 0.8745; 0.8732