EURGBP Falls to 10-Mth Low on Strong Bearish Acceleration

EURGBP Falls to 10-Mth Low on Strong Bearish Acceleration

The cross is in step fall which commenced in mid-European and extends into American session on Thursday.

Strong acceleration broke through key supports at 0.8692 (Fibo 61.8% of 0.8312/0.8306, Apr/Aug 2017 ascend) and 0.8668 (22 Mar spike low), hitting the lowest levels since early June 2017.

Strong bearish signal is generating on probe through 0.8692/68 pivots, with close below to confirm and open way towards 0.8600 (bear-channel support line) and 0.8547 (Fibo 76.4%) in extension.

The single currency came under increased pressure after dovish ECB minutes and fresh strength of the dollar as fears about escalation of tensions over Syria eased, while sterling maintains firm tone.

Bearish daily techs remain supportive but bears may lose traction on approach to 0.8600 target as RSI is entering oversold territory.

No firmer reversal signal seen so far, however, strong bears may take a breather before continuing, with upticks expected to be capped under 0.8700 and offer better selling opportunities.

Falling 10SMA (0.8724) marks pivotal barrier, break of which would sideline immediate bearish threats.

Situation in Syria remains in focus.

Res: 0.8700; 0.8724; 0.8740; 0.8764
Sup: 0.8640; 0.8600; 0.8547; 0.8500

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