EURGBP extends weakness after double upside rejection

Slobodan Drvenica Windsor Brokers

EURGBP

The cross holds in red on Monday and extended weakness from Friday, when it fell 0.8% after repeated rejection under daily cloud.
Daily cloud is thickening after twisting today and producing increased pressure, together with double-top which has formed on daily chart (12 / 20 Oct highs).
Close below 0.8919 (Fibo 61.8% of 0.8855/0.9022) would generate bearish signal for extension through daily Kijun-sen (0.8889) towards key near-term support at 0.8855 (16 Oct low / Fibo 61.8% of larger 0.8745/0.9032 upleg).
Break here is needed to confirm completion of double-top pattern and spark fresh bearish acceleration towards targets at 0.8813/00 (Fibo 76.4% / round-figure support).
Broken Tenkan-sen (0.8944) is expected to limit recovery attempts and keeps near-term bears intact.

Res: 0.8929; 0.8944; 0.9005; 0.9014
Sup: 0.8889; 0.8855; 0.8813; 0.8800

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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