EURGBP- Except we see a return above the 0.8409/21 levels, the risk is for EURGBP to retarget its key support located at the 0.8263 level. This if seen will call for further declines towards its Aug’2010 low at 0.8141. Further down, support comes in at its 2010 low at 0.8066 level. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, a return above the 0.8409/21 levels will have to occur to resume its uptrend towards the 0.8485 level. We may see a reversal of roles as resistance at this level thus turning the cross back down. However, if a cut through that level occurs, its Dec 08’2011 high at 0.8560 will be targeted with a breach exposing the 0.8616 level. All in all, the cross continues to retain its nearer term downside threats.
