EURGBP- We may see EURGBP returning to its key support located at 0.8218 having weakened to close lower the past week. If the 0.8218 level is decisively violated, further declines should shape up towards its Aug’2010 low at 0.8141. Further down, support comes in at its 2010 low at 0.8066 level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, EURGBP will have to break and hold above the 0.8409 and the 0.8421 level, its Dec 29’2011 high to trigger its near term uptrend now on hold. This if seen will open the door for further upside offensive 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 maintain its downside tone.
