EUR/GBP Outlook: fresh Brexit optimism sparked strong bearish acceleration

Slobodan Drvenica Windsor Brokers

EUR/GBP

The cross fell strongly on Friday as renewed Brexit optimism boosted sterling. Fresh probe below 0.8900 handle (also 50% of 0.8494/0.9324 ascend) pressures Thursday's 0.8885 spike low (13-month low). Firm break here would signal extension of downtrend from 0.9324 (12 Aug peak) towards pivotal supports at 0.8840 (200DMA) and Fibo 61.8% of 0.8494/0.9324 (0.8808). Daily studies are in full bearish setup and weekly chart shows the pair on track for the fifth consecutive bearish weekly close that adds to negative sentiment and maintains bearish outlook.

Res: 0.8906; 0.8937; 0.8976; 0.9005
Sup: 0.8885; 0.8840; 0.8828; 0.8808

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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