EURGBP: Sellers above .8000 to dominate; Key .7960 targeted
The rally from last week's low, and the key 50 percent correction point, extended yesterday. A second positive daily performance in succession was posted but net gains were limited with the highs of the day – above .8000 – rejected. This upside failure has attracted additional selling interest in Asia and although net downside is not extensive, intraday signals are now negative. So our call is Cautiously Bearish below .8023. The immediate objective is .7976, Friday’s open, and a move through that point should see the market focusing on .7960, the key 50 percent correction point, or even towards .7942.
The risk is that selling pressure is being overrated and this would be confirmed by a move up through .8023, yesterday's top. Further gains would then target .8033, last week's high, or even towards .8063, the October 31 open.