- EUR/GBP is extending declines from major trendline resistance at 0.8780.
- The pair is trading slightly higher on the day after upbeat German PPI data.
- Upside, however, finds stiff resistance at 5-DMA by 0.8702, further upside only on break above.
- Technicals are slightly bearish, Stochs have rolled over from overbought zone and MACD is on verge of a bearish crossover.
- Confirmation with bearish MACD crossover and RSI fall below 50 levels will see further drag.
- Cloud top at 0.8615 is immediate support. Violation there could see test of 100-DMA at 0.8579.
- Focus on UK producer price and consumer inflation data due Tuesday for further impetus in the pair.
Support levels - 0.8614 (20-DMA and cloud top), 0.86, 0.8579 (100-DMA)
Resistance levels - 0.8702 (5-DMA), 0.8770 (trendline), 0.8787 (Mar 13 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Neutral Neutral
1D Neutral Neutral
1W Bullish Neutral
Recommendation: Good to go short on rallies around 0.8690, SL: 0.8740, TP: 0.8615/ 0.86/ 0.8580
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -14.8883(Neutral), while Hourly GBP Spot Index was at -23.1018 (Neutral) at 1230 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.