EUR/GBP Outlook: bearish continuation signals extension towards May's lows; weekly cloud base to cap
|EUR/GBP
The cross remains in red on Monday, following heavy losses in past two weeks and formation of bearish continuation pattern on daily chart, on fresh extension lower after two long-egged Dojis last week. Last Friday's break and close below 200WMA (which now offers significant resistance at 0.8646 and caps today's action) added to negative outlook. Broken weekly cloud base (0.8695) lays just above and reinforces barrier. Bears eye early May lows at 0.8496/89, but final push lower might be delayed for consolidations as daily studies are oversold, with upticks to remain capped under 200WMA / weekly cloud base and keep bears intact.
Res: 0.8646; 0.8686; 0.8695; 0.8786
Sup: 0.8574; 0.8489; 0.8471; 0.8312
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