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50-day EMA Cracks into the Close

EURGBP TECHS
  • RES 4: 0.8814 High May 4
  • RES 3: 0.8793 61.8% retracement of the Feb 3 - Aug 23 bear leg
  • RES 2: 0.8768 High Nov 20 and key resistance
  • RES 1: 0.8716 76.4% retracement of the Nov 20 - Dec 11 sell-off
  • PRICE: 0.8631 @ 15:07 GMT Jan 04
  • SUP 1: 0.8610 Low Jan 04
  • SUP 2: 0.8571 Low Dec 15
  • SUP 3: 0.8549 Low Dec 11 and the bear trigger
  • SUP 4: 0.8524 Low Sep 5

EURGBP slipped to new pullback lows Thursday, extending the weakness off last week’s high and taking out the 50-day EMA support in the process. With the level broken, there remains potential for a stronger short-term reversal lower before any continuation of the underlying bull cycle. Key support is unchanged at 0.8549, the Dec 11 low. To the upside, sights are on 0.8716 next, a Fibonacci retracement point. Initial support lies at 0.8571, the Dec 15 low.

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