- EUR/GBP downside pauses at 0.87 handle. The pair pared losses from session lows at 0.8707 to close at 0.8724 on Wednesday's trade.
- The major is trading in a narrow range as markets await EZ PMIs along with UK retail sales and BoE policy decision.
- Technical indicators support downside in the pair. Price grinding lower in slopping channel pattern.
- RSI is well below 50 levels and momentum studies are bearish. We see -ve DMI dominance and ADX support for the downtrend.
- Bears now target 61.8% Fib at 0.8682. We see bearish invalidation only on retrace above daily cloud.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-finds-support-at-50-DMA-at-08841-break-below-will-see-further-weakness-1203892) has hit TP1/2.
Recommendation: Book partial profits at lows. Hold for further weakness.
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