Ransquawk

EURGBP lowered during the yesterday’s session 5th day in a row. A strong downside momentum led the ratings to around the support zone at 0.8726, whence in the second half of June an upward move to the high 0.9098 took place. Considering the importance of the support zone mentioned above, one can expect a corrective rebound after its positive test. An additional factor increasing the chance of declines is the distance from averages (EMA 10/20 channel). Currently, the price is over 120 pips under the 20-day EMA. In the event of a correction, the nearest resistance zones may be provided by:
-EMA 10/20 channel,
-trend line from this year’s highs
-the horizontal zone within 0.8868

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Ransquawk