EURGBP-With the cross bearish and weakening, further declines is likely towards the 0.7970/49 levels. As long as it holds below the 0.8140 level and its medium term declining trendline, the above view remains intact. On continued weakness, the cross could expose the 0.7840 level where a violation will target the 0.7806 level and then the 0.7691 level, its Jun’2010 low. Its daily RSI is bearish and pointing lower suggesting further declines. Alternatively, a climb back above the 0.8140 level is required to halt its bearishness and then turn attention to the 0.8168 level, its declining trendline resistance. We expect here or even the 0.8216 level to cap upside gains and turn it lower again. However, if this fails to occur, it will aim at the 0.8250 level with a break targeting the 0.8423 level. All in all, the cross continues to face downside pressure medium term downside bias.
