EURGBP-With a follow through lower on its Monday weakness seen during Tuesday trading session, risk of further bearishness is building up towards the 0.8517 level, its Nov 18’2011 low. This view remains valid as long as EURGBP continues to trade below the 0.8662 level. This will leave further weakness towards the 0.8485 level, its Nov 10’2011 high with a loss of there resuming its medium term downtrend and extending price declines towards the 0.8355 level, its Feb’2011 low. Further down, its Jan’2011 low at 0.8284 will come in as the next downside target. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the cross will have to return above the 0.8662 level to annul its present bear pressure and trigger further upside offensive towards the 0.8794 level, its Sept 21’2011 high. Further out, support stands at the 0.8885 level, its Aug 10’2011 high and subsequently the 0.9083 level, its Jun 01’2011 high. All in all, the cross continues to maintain its medium term downtrend theme with eyes on the 0.8485 level.
