EURGBP continues to trend south and hit new 3 ½ month low on Friday, in extension of steep and uninterrupted downtrend from 0.8765 (Nov 16 peak).
The pair is on track to complete the second week of heavy losses, after November’s close in red marked the biggest monthly loss since May.
Fresh signals that the ECB will start cutting interest rates before BoE, after the latest comments from Bank of England’s hawks that rates may stay elevated for longer, additionally weighed on the pair.
Friday’s break below the base of thick daily cloud (0.8616) generated fresh bearish signal, which requires confirmation on weekly close below the cloud.
Daily studies are in full bearish setup but overextended and warning about possible corrective action in coming sessions.
Cloud base and 100DMA (0.8616/38 respectively) reverted to resistances which should ideally cap upticks and guard 0.8650/61 (Nov 16 former higher low / broken Fibo 38.2%).
Res: 0.8616; 0.8638; 0.8661; 0.8674.
Sup: 0.8596; 0.8567; 0.8556; 0.8523.
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