FxWirePro: EUR/GBP Downside Stalls at 38.2% Fib, Break Below Needed for Further Downside - Short on Break Below 0.7683

FxWirePro: EUR/GBP Downside Stalls at 38.2% Fib, Break Below Needed for Further Downside - Short on Break Below 0.7683

19 May 2016, 08:29
Roberto Jacobs
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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 

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