EURGBP edges higher in early Thursday after hitting 13-month low following 0.8% drop on Wednesday (the biggest daily loss since June 22), when the pound was strongly lifted by signals that new PM Burnham will pick a fiscally conservative finance minister to be in charge of handling fragile public finances.
Oversold daily studies contributed to partial profit-taking after strong fall on Wednesday, with limited upticks seen rather as positioning for fresh push lower, as larger downtrend remains intact.
Technical picture on daily chart remains bearish, though with overstretched momentum studies that open way for some corrective action.
Falling 10DMA (0.8520) should ideally cap and guard upper breakpoints at 0.8550 zone (broken 50% retracement of 0.8222/0.8865 rally / 100WMA), violation of which may sideline larger bears for stronger bounce that would unmask next key barriers at 0.8600/10 zone (200WMA / former range floor and higher base).
Firm break of cracked Fibo support at 0.8467 (61.8% of 0.8222/0.8865) where bears faced strong headwinds on Wednesday / today, would signal continuation of larger downtrend and expose targets at 0.8373 (Fibo 76.4%) and 0.8355 (29 May 2025 low).
Res: 0.8500; 0.8520; 0.8550; 0.8600
Sup: 0.8467; 0.8449; 0.8373; 0.8355
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