Technical Outlook EURGBP 16.10.2017

Technical Outlook EURGBP 16.10.2017

EURGBP – bears may pause above 20SMA before resuming; hourly cloud to cap upticks

The cross remains in red for the third consecutive day and fell further on Monday, extending weakness after last week’s strong upside rejection at daily cloud base (0.9024).
Bears met target at 0.8855 on Monday (Fibo 61.8% of 0.8745/0.9032 upleg) which marks pivotal support (reinforced by 20SMA), break of which would generate fresh bearish signal.
Bearish setup of daily studies supports further weakness, as bearish weekly candle with long upper shadow, left last week, also weighing on market.
Oversold slow stochastic suggests bears could enter consolidation above 20SMA.
Converged 10/100 SMA’s (0.8917/21) offers solid resistance, reinforced by falling hourly cloud (spanned between 0.8928 and 0.8954) which should limit upside attempts.

Res: 0.8895; 0.8920; 0.8954; 0.9000
Sup: 0.8855; 0.8813; 0.8800; 0.8745