FxWirePro: EUR/GBP breaks 100-DMA support, bias lower, | October 16, 2017

Monday, October 16, 2017 10:37 AM UTC

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• EUR/GBP is extending weakness after rejection at 50-DMA in previous week's trade.
  
   


• The pair has broken 100-DMA support at 0.8920, bias still bearish.




• Stochs have turned lower from near overbought levels and RSI has fallen below 50.
  
   


• We see scope for test of minor trendline support at 0.88. Further weakness on break below.
  
   


• On the flipside, break above 50-DMA could see bearish invalidation.

Support levels - 0.88 (trendline), 0.8742 (200-DMA), 0.8719 (June 16 low), 0.8682 (61.8% Fib retrace of 0.8297 to 0.9306 rally)

Resistance levels - 0.8919 (5-DMA), 0.8922 (100-DMA), 0.9068 (23.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-Trade-Idea-936333) has hit all targets.

Recommendation: Good to go short on rallies around 0.8880/90, SL: 0.8930, TP: 0.88/ 0.8745.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -97.1838 (Bearish), while Hourly GBP Spot Index was at 36.688 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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