EURGBP: Pressured To The Downside, Targets Key Support

[FXTechstrategy Team]

EURGBP- The cross extended its downside pressure the past week selling off strongly and paving the way for further declines to occur. In such a case, the 0.7806 level, its Oct 26’2008 low will come in as the next downside objective with a violation of there allowing for a run at the 0.7691 level, its Oct 2008 low. Below here could see EURGBP pushing further lower towards the 0.7594 level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, the cross will have to return above the 0.8154 level and its declining trendline to annul its present downside and then resume its short term uptrend. We expect a back off lower at these levels but if broken, further upside pressure should build up towards the 0.8250 level and then the 0.8423 level. Further out, the 0.8423 level comes in as the next upside target. All in all, the cross remains biased to the downside in the medium term.