After hitting multi-week highs at 0.7280 earlier in the week, EUR/GBP has deflated to the current 0.7226 area on selling pressure in the euro and a consolidative pattern in the sterling.
- However, dip today is not supported by volumes, bull signs persist as latest dip repelled by the 100 & 200-DMAs as well as the daily cloud base.
- But daily Stochs show a bearish crossover at overbought levels, and daily RSI is also biased lower.
- Some correction lower is anticipated, which should provide good entry points. For now expect pair to consolidate before resuming uptrend.
- Around 0.7210 should be good entry levels for a long upto 0.73 levels 0.7296 is 61.8% of 0.7493 - 0.6982 fall.
- EUR/GBP is currently trading at 0.7226, with immediate support on the downside at 0.7220 (Dec 8 low) and resistance at 0.7274 (Daily Cloud Top).
Resistance Levels:
R1: 0.7274 (Daily Cloud Top)
R2: 0.7279 (Daily High Dec 8)
R3: 0.7296 (61.8% of 0.7493 - 0.6982 fall)
Support Levels:
S1: 0.7220 (Dec 8 low)
S2: 0.7213 (Daily Cloud Base)
S3: 0.7205 (100 DMA)
