GBP bulls unstoppable on rising 'Bremain' support, EUR/GBP down -0.63% below 0.78 handle.
The latest opinion polls show votes shifting in favour of the ‘Remain’ campaign as we step into the EU referendum week.
EUR/GBP has hit lows of 0.7770 and has since pared some losses to currently trade around the 0.78 handle.
Technicals support downside in the pair. Stochs have rolled over from overbought territory and RSI is biased south. Pair slips below 50-DMA at 0.7820.
The MACD line is also on the verge of a bearish crossover on signal line. Close below 20-DMA at 0.7780 will open downside to 0.7720 and then 0.7656 (78.6% Fib of 0.7565 to 0.7994 rally).
German PPI data ahead of the German Buba monthly report release awaited, while all eyes will remain on the EU referendum.
Good to sell rallies around 0.78 levels, SL: 0.7850, TP: 0.7750/ 0.7720/ 0.77
Comment
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All targets hit, book partial profits.
Market sentiment could be volatile in the lead up to the vote and recent moves on currency markets remain vulnerable to swings/reversals.
EUR/GBP fades a relief rally to 0.7744, is back below 0.77 handle.
Pair tests session lows of 0.7666 after breaking minor support at 0.7682.
Break of 78.6% Fib at 0.7656 to see test of 200-DMA at 0.7565.
This is mine:
Have a nice trade!