FxWirePro: EUR/GBP Downside Stalls at 38.2% Fib, Break Below Needed for Further Downside - Short on Break Below 0.7683
- British currency outperformed its major rivals, boosted by Brexit polls results that showed an increase in favor of the “stay” position.
- EUR/GBP saw huge slump in Wednesday's trade. The pair broke major support at 0.7790.
- Downside seems be pausing at 38.2% Fib retrace of Nov-Apr rally at 0.7683. Break below needed for further downside.
- EUR/GBP trades with a major downside bias on the weekly charts, break below 38.2% Fib will see test of 50% Fib at 0.7550 levels.
- With the Fed minutes now behind, focus shifts towards the ECB monetary policy meeting accounts ahead.
- Immediate support lies at 0.7652 (Mar 10th lows), while immediate resistance is located at 0.7716 (Feb 5th high).
- Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-rangebound-ahead-of-EZ-inflation-data-momentum-studies-bearish-209596) has hit all targets.
Recommendation: Book full profits. Short on break below 0.7683, target 0.7650/0.76/0.7550