EURGBP traded sharply lower last Friday and in the process, cleared support at 0.8792, the Apr 19 low. The sell-off undermines a recent bullish theme and instead highlights a developing bearish threat. A continuation lower would pave the way for a test of support at 0.8719, the Mar 15 low and a key level. On the upside, key short-term resistance has been defined at 0.8875, the Apr 25 high.
Find more articles and bullets on these widgets:
The current bear cycle in USDCAD remains in play and the pair continues to weaken. This week’s bearish extension has resulted in a break of the 50-day EMA and 1.3562, the 50% retracement for the Feb 2 - Mar 10 rally. The move lower signals scope for a continuation towards 1.3491, the 61.8% retracement. On the upside, initial firm resistance is seen at 1.3649, the 20-day EMA.