EURGBP- With EURGBP extending its downside weakness the past week and remaining vulnerable below its broken support turned resistance at the 0.7949 level, there is likelihood of further declines. This if seen will pave the way for a run at the 0.7840 level and then the 0.7800 level. Its broader medium term bias remains consistent with this view. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to return above the 0.8154 level and its declining trendline to resume its correction. We expect a back off lower at these levels but if broken, further upside pressure should build up towards the 0.8250 level and then the 0.8423 level. Further out, the 0.8423 level comes in as the next upside target. All in all, the cross remains biased to the downside medium term downtrend.
