EURGBP: Clearance Of Key Support Opens Further Downside Risk

Having broken and held firmly below its key support at the 0.8218 level,EURGBP faces further downside risks. This development now leaves the cross targeting its Aug'2010 low at 0.8141. Further down, support comes in at its 2010 low at 0.8066 level. A cut through here will open the door for a move lower towards its psycho level at 0.8000. Its daily and weekly RSI are bearish and pointing lower supporting this view. Alternatively, in order for the cross to halt its present downside and resume its uptrend, it will have to break and hold above the 0.8423 level and the 0.8504 level, its Feb 2012 high. This will open the door for a move further higher towards its Dec 08'2011 high at 0.8560 with a breach exposing the 0.8616 level. All in all, the cross continues to look susceptible to the downside.