EURGBP lost ground after multiple rejection under key 200DMA barrier

EURGBP extends pullback from new multi-week high (0.8705) into second consecutive day, adding to initial warning of stall and formation of reversal pattern on daily chart.

Larger bulls faced a multiple rejection under pivotal 200DMA (0.8708) before losing ground, with dip on profit-taking being boosted by negative fundamentals, as the single currency came under increased pressure from decision of Italian government to cut growth forecasts and raise budget deficit targets for this year, as the economy was hurt more than expected by high interest rates.

Fresh bears broke below initial support at 0.8651 (10DMA) and eye more significant Fibo support at 0.8624 (38.2% of 0.8492/0.8705), close below which is needed to confirm formation of reversal pattern and risk deeper fall.

Res: 0.8655; 0.8670; 0.8700; 0.8709
Sup: 0.8624; 0.8612; 0.8599; 0.8573