FxWirePro: EUR/GBP hits fresh 8-month lows at 0.8830, break below 200W MA to plummet prices

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.34% lower on the day at 0.8833 at around 09:00 GMT, extending previous session's downside.

The pound sterling finds aggressive fresh bids on Thursday amid optimism over COVID-19 vaccine rollouts and decrease in COVID-19 cases in the UK.

Price action has hit new 8-month lows at 0.8830, technical indicators support further weakness.

The pair trades in a 'Falling Wedge' pattern and price is attempting break at wedge base support.

The pair has resumed weakness after failure to extend gains above 5-DMA, bias is bearish.  

Next major support lies at 200W MA at 0.8830. Momentum is strongly bearish, scope for test of 61.8% Fib at 0.8743 on break below.

Support levels - 0.8830 (200W MA), 0.88 (psychological mark), 0.8743 (61.8% Fib)

Resistance levels - 0.8850 (Wedge base), 0.8862 (110W EMA), 0.89

Summary: EUR/GBP trades with a strong bearish bias. Close below wedge base support and breach at 200W MA at 0.8830 will plummet prices further. Scope then for test of 61.8% Fib 0.8743.