Fresh bearish acceleration hits lowest levels in nine months
Bearish acceleration on Wednesday probes below 0.8500 mark for the first time in seven months and signals continuation of larger downtrend from 0.9324 (2019 high, posted on 12 Aug).
Fresh bears cracked strong support zone at 0.8489/71 (lows of 6 May/13 Mar), break of which would open way towards next key supports at 0.8407 (Fibo 38.2% of larger 0.6924/0.9324 uptrend) and 0.8312/04 weekly higher base (lows of 18 Apr 2017 and 5 Dec 2016).
Sterling maintains strong bullish sentiment on expectations for Tory’s majority on UK election, with firm bearish setup of daily / weekly studies adding to negative scenario for EURGBP cross.
Falling 10DMA tracks the downtrend and marks initial resistance at 0.8437, followed by descending 20DMA (0.8556) and only close above the latter would put bears on hold.
Res: 0.8500; 0.8529; 0.8537; 0.8556
Sup: 0.8471; 0.8407; 0.8383; 0.8304