The cross extended its downside pressure during Monday trading session today opening the door for additional weakness. On continued weakness, EURGBP will aim at the 0.7806 level, its Oct 26'2008 low where a violation will pave the way for a move lower towards its key support at the 0.7691 level, its Oct 2008 low. Below here could see the cross pushing further lower towards the 0.7594 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the cross will have to return above the 0.7949 level to halt is bearishness. This will create scope for more upside towards the 0.8154 level and its declining trendline. This will resume its short term uptrend now on hold. We expect a back off lower at these levels but if broken, further upside pressure should build up towards the 0.8250 level and then the 0.8423 level. All in all, the cross remains biased to the downside in the medium term.
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