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Downside Persists With 0.8700 Cleared

EURGBP TECHS
  • RES 4: 0.8840 High Feb 4
  • RES 3: 0.8797 High Feb 9
  • RES 2: 0.8739 Low Feb 5
  • RES 1: 0.8700 Feb 18 high
  • PRICE: 0.8638 @ 17:21 GMT Feb 23
  • SUP 1: 0.8615 Low Feb 23
  • SUP 2: 0.8610 1.0% 10-dma Envelope
  • SUP 3: 0.8595 Low Mar 2, 2020
  • SUP 4: 0.8570 76.4% Feb-Mar 2020 Rally

EURGBP outlook deteriorated further Tuesday, with the cross hitting new cycle lows of 0.8615. The cross now looks comfortable below the 0.8700 handle, which sets the scene for a move lower towards 0.8600 next and the 0.8570 Fibonacci retracement, 76.4% of the Feb - Mar 2020 rally. Last Thursday's key technical break has been the move below 0.8671, the Apr 30 2020 low. This reinforces current trend conditions. Initial resistance is at 0.8700, Feb 18 high.

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