- EUR/GBP extends slide for 3rd consecutive session, down 0.17% on the day.
- The single currency largely muted despite upbeat retail sales data. EU retail sales (MoM) registered at 0.7% above expectations (0.6%) in September.
- EUR/GBP extends post-BOE corrective slide, is on track to test 200-DMA at 0.8762.
- Violation at 200-DMA could see further downside, scope then for test of weekly 50-SMA at 0.8719.
- Technical studies on weekly charts are also bearish. Stochs and RSI are biased lower and MACD supports trend lower.
- Immediate resistance seen at 0.8884 (20-DMA), break above to see minor upside till 50-DMA at 0.8924.
Support levels - 0.8762 (200-DMA), 0.8733 (Nov 1 low), 0.8682 (61.8% Fib retrace of 0.8297 to 0.93065 rally)
Resistance levels - 0.8836 (5-DMA), 0.8885 (20-DMA), 0.89, 0.8924 (50-DMA)
Recommendation: Good to go short on rallies around 0.88/ 0.8815, SL: 0.8885, TP: 0.8765/ 0.8735/ 0.87/ 0.8685.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -91.0913 (Bearish), while Hourly GBP Spot Index was at 86.0152 (Bullish) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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