EURGBP: Halts Corrective Recovery, Bearish Momentum Set To Continue (Daily Technical Strategist).

EURGBP- Outlook for EURGBP remains lower following a reversal of most of its corrective recovery gains triggered from the 0.8301 level and a lower weekly close.With that said, we expect the cross to return to that level (0.8301) on continued downside pressure with a cut through there allowing for more declines towards the 0.8284 level, its Jan 10’2011 low. Further down, its psycho level at 0.8200 will serve as the next support. Its daily and weekly RSI are bearish and pointing lower suggesting further declines. Alternatively, on any recovery higher, the 0.8421/85 levels will come in as resistance where a reversal of roles is expected to occur and then 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 and then the 0.8794 level, its Sept 21’2011 high. All in all, bear pressure remains intact having maintained its medium term downtrend.

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