EURGBP – Downside remains at risk after repeated rejection at strong 0.8850 resistance
|EURGBP
The cross eased to 0.8800 support on Tuesday after rejection at 0.8850 zone where upside attempts in past few sessions were repeatedly rejected. Resistance is marked by sideways-moving 30SMA and reinforced by falling 20SMA which is attempting to form bear-cross and increase pressure. Today's action was contained at 0.8800 by converged 10/200 SMA's which are also on track to form death-cross and signal fresh extension lower on break. Overall bearish daily techs keep the downside at risk with firm break below 0.8800 and 0.8778 pivots (200SMA/daily Tenkan-sen) needed to signal reversal and trigger stronger retracement of two-day 0.8689/0.8848 rally. Plethora of resistances provided by daily MA's (20/30/55 SMA) and thick daily cloud, continues to weigh on near-term action. Only sustained break above 0.8850/60 resistance zone would provide relief and signal extension of recovery rally from 0.8689 (08 Dec low).
Res: 0.8850; 0.8860; 0.8877; 0.8912
Sup: 0.8785; 0.8748; 0.8726; 0.8689
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