I have been holding a bearish outlook for the EURGBP throughout the month of September, and the pair has fallen through key support level over the past few weeks.
Currency Pair: EUR/GBP Short-Term Bias: Short Chart: 60 Min Charts
Analysis Update
The EURGBP continues to hold near 0.7721 (21.4% Fib level of 0.7596-0.8189), signaling that the pair is finding support near this level, and may bounce to the upside during the next few days. The downward trend in the 120 SMA has led me to hold a bearish outlook for the euro-pound in the near-term, and I expect the pair to hold below 0.7890 (50.0% Fib level of 0.7596-0.8189) in the weeks ahead. The underlying downtrend should lead the pair lower, and we may see the EURGBP move towards the 3/10 low of 0.7596 over the week. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
I have been holding a bearish outlook for the EURGBP throughout the month of September, and the pair has fallen through key support level over the past few weeks. During the Asia session, the pair weakened further to fall below the 3/24 low of 0.7745, but looks to be finding support near 0.7721 (21.4% Fib level of 0.7596-0.8189). The huge divergence from the 120 SMA indicates that the euro-pound may bounce higher over the next few hours, but I anticipate the pair to hold below 0.7890 (50.0% Fib level of 0.7596-0.8189) in the near-term. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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