EUR/GBP Turns Negative, 0.7770 Support on Test
pair's bounce off day's low got rejected at 0.7800 handle, dragging the
pair back towards a short-term descending trend-channel support near
On Monday, the pair managed to recover gap down opening below the trend-channel support to reclaim 0.7800 mark but failed to extend the momentum. The pair subsequently reversed all of its gains to drop back and retest the descending trend-channel support.
Technical levels to watch
Reversal from immediate resistance level and subsequent retest of a short-term descending trend-channel support points to extension of the pair’s near-term weakness. However, it would be prudent to wait for a decisive break below the channel support.
A follow-up selling pressure, dragging the pair below trend-channel support, would confirm a break-down, which could now trigger a fresh leg of weakness initially towards 0.7735 intermediate support, before eventually dropping to March daily closing lows support near 0.7715 region.
On the upside, 0.7800-0.7815 area now becomes immediate strong resistance and only a sustained strength above 0.7800 mark handle would bring 0.7850 resistance back in action.