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FxWirePro: EUR/GBP breaks below 50-DMA, good to go short on rallies

  • EUR/GBP is extending weakness after upside was capped short at Triangle Top.
     
  • The pair has slipped below 50-DMA which is stiff resistance at 0.8761.
     
  • Technical indicators are biased lower. RSI below 50, with further room for weakness.
     
  • Stochs are sharply lower and we see -ve DMI dominance which adds to bearish bias.
     
  • The pair is on track to test 61.8% Fib at 0.8682. Violation there could see test of Triangle base at 0.8655.
     
  • On the upside, break above 50-DMA could see re-test of 0.8835.

Support levels - 0.8682 (61.8% Fib), 0.8655 (Triangle base), 0.8620 (Apr 17 low)

Resistance levels - 0.8761 (50-DMA), 0.8771 (5-DMA), 0.88

Recommendation: Good to go short on rallies around 0.8735/55, SL: 0.8770, TP: 0.8685/ 0.8655.

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