Having sold off through the 0.8373 level on continued bearish momentum during early morning trading today, the immediate risk is for EURGBP to convincingly break the 0.8355 level, its Feb'2011 low. This development if seen will pave the way for more weakness towards the 0.8284 level, its Jan 10'2011 low. Further down, its psycho level at 0.8200 will serve as the next support on further declines. Its daily and weekly RSI are bearish and pointing lower suggesting further declines. Alternatively, on any recovery higher, its broken support at the 0.8485 level should reverse roles as resistance and turn the cross back down. However, if this fails to happen, its Dec 08'2011 high at 0.8560 will be targeted where a breach will expose the 0.8616 level with scope for further price extension likely towards the 0.8794 level, its Sept 21'2011 high. All in all, bear pressure remains intact with risk of further weakness towards the 0.8284 level growing.
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