EURGBP: Bearish Medium Term, Eyes The 0.7949 Level

We continue to hold our downside bias on EURGBP as we look for it to decline further towards the 0.7949 level. A breach of here will turn focus to the 0.7840 level. A decisive clearance of this level will open the door for a run at the 0.7750 level with a cut through here paving the way for a move lower towards its Oct 2008 low at 0.7691. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the cross will have to break and hold above the 0.8101 level and the 0.8197 level to resume its recovery. This will pave the way for push higher towards the 0.8218 level and then the 0.8275 level followed by the 0.8423 level. Further out, resistance resides at the 0.8504 level, its Feb 2012 high. All in all, the cross continues to hold on to its medium term bias despite its recovery attempts.