EUR/GBP Technical Analysis: Retests 100-DMA post-UK retail sales, remains vulnerable

Haresh Menghani FXStreet

• The cross continued with its struggled to sustain above 100-hour SMA and make it through a short-term descending trend-line resistance on the 1-hourly chart.

• Overnight Brexit headlines-led knee-jerk spike to levels beyond the 0.8900 handle also turned out to be short-lived, indicating increasing selling bias at higher levels.

• The cross slipped back to test 100-day SMA support, or over seven-week lows, following today’s surprisingly positive UK monthly retail sales figures.

• Technical indicators on the mentioned chart have started drifting into negative territory and support prospects for an extension of the near-term bearish trajectory.

EUR/GBP 1-hourly chart

Spot Rate: 0.8865
Daily High: 0.8890
Trend: Bearish

Resistance
R1: 0.8890 (current day swing high)
R2: 0.8914 (R1 daily pivot-point)
R3: 0.8938 (50-day SMA)

Support
S1: 0.8861 (over 7-week low set yesterday)
S2: 0.8838 (200-day SMA)
S3: 0.8800 (round figure mark)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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