EURGBP: Turns Lower off Trendline Resistance, Targets The 0.8010/0.7949 Levels.

[Mohammed Isah]

EURGBP- With EURGBP closing lower the past week, after turning off its trendline resistance, the risk of weakening further is expected. In such a case, its key support located at the 0.8010/0.7949 levels will come in as the next downside target where a violation will call for a run at the 0.7840 level and then the 0.7800 level. Its broader medium term bias remains consistent with this view. On the upside, the pair will have to return above the 0.8154 level to resume its correction. This if seen will aim at the 0.8172 level where its declining trendline is located. We expect a back off lower at this level but if it breaks, 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 has lost upside momentum and now looks to resume its medium term.