EURGBP- With EURGBP selling and breaking below its key support at the 0.8301 level, further bearish momentum is set to continue. With that said, we expect the cross to decline further towards its nearby support at the 0.8284 level, its Jan 10’2011 low. Further down, its psycho level/Sept 2010 low at 0.8200 will serve as the next support on continued bearishness. Its daily RSI is bearish and pointing lower suggesting further declines. Alternatively, on any recovery higher, the 0.8368/0.8421 levels will come in as resistance where a reversal of roles is expected to occur and then turn the cross back down. However, if a cut through those levels occurs, its Dec 08’2011 high at 0.8560 will be targeted where a breach will expose the 0.8616 level and then the 0.8794 level, its Sept 21’2011 high. All in all, bear pressure remains intact having resumed its medium term downtrend.
