“¢ The cross extended last week’s rejection slide from the 0.8900 neighborhood amid improving sentiment surrounding the British Pound, led by positive incoming UK economic data.
“¢ A follow-through weakness back below the very important 200-day SMA might invalidate last week’s bullish breakout and should turn the cross vulnerable to correct further.
“¢ Short-term technical indicators have also started losing positive momentum and thus, increase prospects for additional weakness in case of any positive surprise from today’s UK services PMI print.
Spot Rate: 0.8830
Daily High: 0.8841
Trend: Turning bearish
Resistance
R1: 0.8845 (50-period SMA H1)
R2: 0.8878 (R2 daily pivot-point)
R3: 0.8891 (3-1/2 month tops set last Friday)
Support
S1: 0.8820 (200-day SMA)
S2: 0.8797 (June 27 swing low)
S3: 0.8786 (S3 daily pivot-point)
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