EURGBP – Bears look for full retracement of 0.8791/0.9013 upleg

Slobodan Drvenica Windsor Brokers

EURGBP

The cross remains in red on Tuesday, following strong fall on Monday, which broke through plethora of supports, provided by daily MA's and generated another bearish signal on close below Fibo 61.8% of 0.8791/0.9013 upleg at 0.8876. Today's action showed recovery attempts capped by broken 30SMA (0.8885), but the downside also remains limited by Fibo 76.4% support at 0.8843. Bearishly aligned MA's on daily chart and thick daily cloud weighing, favor further downside, but slow stochastic is entering oversold territory and warns of further hesitation of near-term bears. Extended upticks should be limited (ideally to remain below daily Kijun-sen) to keep bears in play for extension of bear-leg from 0.9013 (15 Nov peak and strong upside rejection) towards next target at 0.8791 (07 Nov trough).

Res: 0.8876; 0.8895; 0.8912; 0.8937
Sup: 0.8843; 0.8811; 0.8791; 0.8732

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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