Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Special Focus: EURGBP

EURGBP- With continued bearishness culminating in a break and hold below its key support at 0.8485 levels, its Nov 11’2011 low during Monday trading, further bearish extension is expected in the days ahead.  In such a case, the 0.8355 level, its Feb’2011 low will come in as the next downside target where a decisive violation will call for a move further lower towards the 0.8300 level, its psycho level. Further down, its psycho level at 0.8200 will serve as the next support. Both its daily and weekly RSI are bearish and pointing lower supporting this view. Alternatively, on any recovery higher, its violated support should reverse roles as resistance with a cut through there allowing for more weakness towards its Dec 08’2011 high at 0.8560. Further out, resistance comes in at the 0.8616 level with a loss of there extending further strength towards the 0.8794 level, its Sept 21’2011 high. All in all, bear pressure remains intact having violated the 0.8485 level, triggering the resumption of its medium term weakness.