EURGBP (1H) - short term bearish bias
Both recent tests of the major level of 0.8600 failed to close above with conviction. The path of least resistance turned out to be on the downside. The bearish RSI first saw a deceleration in the rally while the indicator crossed the over-bought line. The breakout below the floor of 0.8540 and the bearish MA cross were confirmations that the euro was the weakest link. As more sellers join the short term trend we would expect the pair to test the daily support level of 0.8460.
Key support: 0.8460
Key resistance: 0.8520
Both recent tests of the major level of 0.8600 failed to close above with conviction. The path of least resistance turned out to be on the downside. The bearish RSI first saw a deceleration in the rally while the indicator crossed the over-bought line. The breakout below the floor of 0.8540 and the bearish MA cross were confirmations that the euro was the weakest link. As more sellers join the short term trend we would expect the pair to test the daily support level of 0.8460.
Key support: 0.8460
Key resistance: 0.8520