Weekly Chart :
Outlook in EURGBP remains on the downside as long as resistance 0.7860 holds on a weekly closing basis , a failure to hold above the 0.7860 levels on a weekly closing basis , could mean a return to the 0.7765 levels where a cut will open 0.7595 levels , further downside will will pave the way towards the 0.73900 levels.
On the upside , resistance comes at the 0.7860 levels , a clear break above this level will signal short term bottoming and put the pair in recovery mode , but recovery above the 0.7860 levels should be limited by the 0.7985 /0.8065 levels .
In all , as long as resistance 0.7860 holds on a weekly closing basis , outlook in EURGBP remains on the downside towards the 0.7765 levels ahead of the 0.7595 levels , but above the 0.7860 levels , the pair faces a recovery risk , but recovery should be limited below 0.7985/0.8065 levels.
Daily chart :
The EURGBP maintained a bullish momentum few days ago , bottomed at the 0.7825 levels and topped at the 0.7873 levels .Now pressure will be on the key resistance 0.7873 .
The EURGBP will have to hold above the 0.7873 levels on a daily closing basis , to push the market for further upside gains , If seen , It will target the 0.7900 levels , a halt is likely , but further upside will open 0.7950 levels ahead of the 0.8000 levels.
Alternatively , a failure to hold above the 0.7873 levels on a daily closing basis , could mean a return to the 0.7825 levels , a cut will bring free fall towards the 0.7765 levels , If 0.7765 fails , expect to see more losses towards the 0.7595 levels ahead of the 0.7500 levels.
In all ,as long as resistance 0.7873 holds on a daily closing basis , outlook in EURGBP remains on the downside towards the 0.7825/0.7765 levels and possible lower towards the 0.7595/0.7500 levels.
Conclusion :
- The pair found resistance at 0.7860 levels on a weekly basis last week !
- The pair found resistance at 0.7873 levels 2 days ago on a daily basis , which means the pair is in overbought area.
- Yesterday , the pair reached the first assumed target at the 0.7900 levels without closing above the 0.7873 levels which means the pair losses the upside momentum .
- At the moment the pair needs to hold above the 0.7873/0.7900 levels to resume the upside offensive , otherwise risk will remain to the downside .
- A weekly close above the 0.7873 levels is need at least to challenge 0.8065 levels next week.
- Support comes at the 0.7825 levels , losing this level will open 0.7765 levels and possible lower..
- Final words , EURGBP , remains under pressure , below 0.8900 , sudden collapse is suggested any moment .
