EURGBP- Vulnerability remains after capping its recovery at the 0.8792 level on Sept 23’2011 and tumbling lower. This leaves EURGBP targeting the 0.8530 level. A decisive break below the 0.8530 level, its Sept 12’2011 low will open the door for further weakness towards the 0.8460 level, its Mar’2011 low and then the 0.8355 level, its Feb’2011 low. Its daily RSI is bearish and pointing lower supporting this view. EURGBP may be retaining upside bias within its rising channel but will have to convincingly break and hold above the 0.8881/5 levels to target the 0.9083 level, its Jun 01’2011 high. Further out, resistance lies at the 0.9150 level, its Feb’2010 high and then its channel top at 0.9230. All in all, the cross continues to face downside risk.
