EURGBP – Downside remains at risk after repeated rejection at strong 0.8850 resistance

Slobodan Drvenica Windsor Brokers

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

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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