EURGBP- With EURGBP breaking and holding below its key support at the 0.8485 level, its Nov’2011 low the past week and maintaining its overall medium term weakness, further bearish momentum is expected. In such a case, the 0.8355 level, its Feb’2011 low will be targeted where a decisive violation will call for further weakness towards the 0.8284 level, its Jan 10’2011 low. Further down, its psycho level at 0.8200 will serve as the next support on continued weakness. Its daily and weekly RSI are bearish and pointing lower suggesting further declines. Alternatively, on any recovery higher, its broken support at the 0.8485 level should reverse roles as resistance and turn the cross back down. However, if a cut through there occurs, its Dec 08’2011 high at 0.8560 will be targeted where a breach will expose the 0.8616 level with further price extension aiming at the 0.8794 level, its Sept 21’2011 high. All in all, bear pressure remains intact having triggered its medium term downtrend.
