EUR/GBP Technical Analysis: Set-up points to an extension of the declining trend

   •  The cross has been trending lower alongside a downward sloping channel and remained under some selling pressure for the fifth consecutive session on Friday.

   •  The fact that it remains well below important intraday moving averages - 50, 100 & 200-hour SMAs support prospects an extension of the ongoing downward trajectory. 

   •  Technical indicators on the 1-hourly chart have been gradually gaining negative momentum and add credence to the near-term negative outlook amid concerns over Italy’s budget proposal.

   •  Today's macroeconomic releases - the flash EZ CPI, the final GDP growth figures and current account deficit figures from the UK, will now be looked upon for some fresh impetus.
 

EUR/GBP 1-hourly chart

Spot Rate: 0.8895
Daily High: 0.8907
Trend: Bearish

Resistance
R1: 0.8915 (horizontal zone)
R2: 0.8933 (R1 daily pivot-point)
R3: 0.8944 (50-day SMA)

Support
S1: 0.8873 (recent daily closing low)
S2: 0.8855 (S2 daily pivot-point)
S3: 0.8841 (200-day SMA)