EURGBP: The pair continues to extend lower following through to the downside on its Monday losses in early Tuesday as it is now closing in on the 0.8745 level, its long term rising trendline. We may see a bounce on initial test but if that level snaps, further weakness should be expected towards its Sept 11'09 low at 0.8722 ahead of the 0.8704 level, its Sept 04'09 low and followed by its July 13'09 high at 0.8698. Its daily studies are bearish and pointing lower suggesting further weakness. On the contrary, if a corrective recovery materializes at its current price level, its just eroded support at 0.8832 should reverse roles and provide resistance. Above there if seen will aim at its former range bottom at 0.8852 ahead of its Jan 08'10 low at 0.8920 with a turn above there creating further upside scope towards the 0.9025 level, its Jan 07'10 high and next its range top at the 0.9053.
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