FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURJPY and EURAUD) for the day)
FxWirePro: EUR/GBP slips below 200-DMA, poised for more weakness
Chart - Courtesy Trading View
EUR/GBP was trading 0.12% lower on the day at 0.8440 at around 07:35 GMT.
The pair hovers around 200-DMA support, break below will drag the pair lower.
Price action is below 200H MA and GMMA shows major and minor trend are bearish on the hourly charts.
Volatility is high as evidenced by wide spread Bollinger bands and break below 200-DMA will drag the pair lower.
Momentum is with the bears, RSI has slipped below the 50 mark. Chikou span is also biased lower.
The shared currency finds some support from the recent hawkish ECB commentary, downside remains cushioned for now.
Focus on the German IFO Survey for May, with the headline Business Climate index expected to arrive at 91.4 vs. 91.8 previous.
Support levels - 0.8440 (200-DMA), 0.8416 (55-EMA)
Resistance levels - 0.8454 (21-EMA), 0.8469 (20-DMA)
Summary: EUR/GBP pivotal at 200-DMA support. Technical indicators support downside in the pair. Watch out for break below 200-DMA for further weakness.