Limited downside for now but risk of further weakness in play
|The cross holds below broken Fibo support at 0.8754 (38.2% of 0.8617/0.8839), but the downside was so far protected by 20SMA (0.8747) despite negative signal from Friday’s bearish outside day.
Both units were supported by fresh risk appetite while sterling remains resilient after news saying Honda will close UK car plant.
Daily techs remain bearishly aligned, as MA’s are in negative setup and momentum approaches bearish territory.
Daily close below cracked Fibo support at 0.8754, which kept the downside protected in past five days, would generate bearish signal, with break and close below 20SMA, needed to confirm reversal and expose targets at 0.8728 (50%) and 0.8702 (Fibo 61.8% of 0.8617/0.8839 rally).
Broken 10SMA (0.8774) is expected to cap and maintain bearish near-term bias, while acceleration and close above 30SMA (0.8798) would neutralize downside risk.
Res: 0.8754; 0.8774; 0.8798; 0.8827
Sup: 0.8743; 0.8728; 0.8702; 0.8669
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