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Technical Analysis – EURGBP bearish below cloud and moving average

EURGBP was not able to sustain Thursday’s big rally that took the pair to 0.7250. There was a daily close below the 200-day moving average on Friday and on Monday the opening was below it at 0.7192. A resumption of the downtrend from 0.7492 is looking possible since the market is below the Ichimoku cloud and below the 200-day moving average. Momentum has lost strength as the RSI is pointing back down.

Also, prices moved back below the 50% Fibonacci retracement of the rise from 0.6935 to 0.7492 (July to October rise). Support comes in at the next Fibonacci levels at 0.7147 and 0.7053. If these support levels fail, the key 0.7000 level comes into view before the market retraces all of the rise from 0.6935.

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