EURGBP: Pressured To The Downside.
EURGBP- Our call for a turn off on a test of the 0.8843 level is now playing out as EURGBP tested and bounced off that level on Thursday.
However, a return above the 0.8976 level must be established to end its present bear threats and open the door for a move higher towards the 0.9040 level, its 2011 high.
Guest post by www.fxtechstrategy.com
Further out, resistance comes in at the its Feb 28’2010 high at 0.9147. Conversely, if it eventually breaks the 0.8843 level, further lower level prices will target the 0.8610 level, its May 26’2011 low followed by the 0.8532 level, its Mar 10’2011 low and probably the 0.8500 level, its psycho level.
All in all, bear pressure remains a threat after the cross failed at the 0.8976 level and tumbled lower the past two days.
GBPUSD: Weakens, Tests Lower Prices.
GBPUSD: Continued bearish momentum saw the pair weakening further in early trading today to test a low of 1.6211.
On a daily close below that level, the risk will be a return to the 1.6105 level, its May 18’2011 low and possibly lower towards the 1.6000 level, its major psycho level.
Its daily RSI is bearish and pointing lower suggesting further declines. Alternatively, for the pair to end its present bear pressure it will have to climb back above the 1.6546 level, its May 31’2011 high.
This will clear the way for a run at the 1.6743 level, its 2011 high and then the 1.6877 level, its Nov’2009 high.
A loss of the latter level will pave the way for further strength towards its bigger resistance at the 1.7039 level, its 2009 higher.
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