Sterling rises to seven-week high vs Euro
The cross dipped to new seven-week low at 0.8675 on Thursday as sterling remains resilient and the Euro weighed down by weak EU/German data and ECB staying on hold and ready to act if needed.
Fresh weakness is attempting to eventually break through three-week range floor (0.8680 zone) that would signal continuation of larger downtrend which was paused for consolidation since 14 Apr.
Bears focus 100DMA (0.8635), violation of which would open way towards Fibo support at 0.8569 (76.4% of 0.8281/0.9498).
Close below 0.8680 is needed to generate signal for bearish continuation.
Bearishly aligned daily studies support scenario, with converged 10/200DMA’s (0.8732) offering strong barrier which is needs to cap and maintain negative bias.
Res: 0.8732; 0.8746; 0.8764; 0.8800
Sup: 0.8675; 0.8635; 0.8600; 0.8569