Formation of Gravestone at highs raises scope for downside in the pair.
5-DMA at 0.9249 is immediate support, close below could see drag upto 20-DMA at 0.9136.
and are in overbought zone, rollover will add to bias.
Violation at 20-DMA finds next major support at 0.9088 (23.6% Fib retrace of 0.83822 to 0.93064 rally).
On the upside, the pair finds major resistance at 0.9310. We see upside only on break above.
Support levels - 0.92, 0.9136 ( 20-DMA ), 0.91, 0.9088 (23.6% Fib retrace of 0.83822 to 0.93064 rally)
Resistance levels - 0.9310 ( resistance), 0.94, 0.9411 (Oct 2009 high), 0.9477 (88.6% Fib retrace of 0.9804 to 0.6930 fall)
Good to go short on close below 5-DMA, SL: 0.9310, TP: 0.92/ 0.9140/ 0.91/ 0.90
GBP buoyed after latest UK manufacturing PMI surpassed estimates and rose to 4-month high of 56.9 in August.
The reading was much better than 55 expected and previous month's reading of 55.3.
TP1 hit. Bias lower.
Sterling boosted after upbeat UK inflation data.
EUR/GBP plunges into daily cloud. Hits 2-month lows at 0.8910.
Bears eye 100-DMA at 0.8851.