EURGBP dips further on Friday, extending pullback from new 3 ½ month high (0.8624) posted previous day.
Fresh weakness cracked pivotal 200DMA (0.8555), with sustained break here to add to bearish signals, as reversal pattern is forming on daily chart.
However, completion of pattern requires violation of pivotal Fibo support at 0.8532 (38.2% of 0.8362/0.8624) to open way for deeper correction.
On the other hand, daily studies are overall bullish and warn that limited correction might be positioning for fresh push higher, as dip contained by 200DMA could be described as a healthy correction of recent steep uptrend.
Close above cracked Fibo support at 0.8567 (23.6%) would ease immediate downside risk, but more work at the upside will be required to signal a higher low and shift near term focus higher.
Res: 0.8567; 0.8578; 0.8595; 0.8614.
Sup: 0.8556; 0.8532; 0.8510; 0.8475.
