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Approaching Trendline Resistance

EURO-STERLING TECHS
  • RES 4: 0.9292 High Sep 11 and the bull trigger
  • RES 3: 0.9220 High Sep 22 and a key near-term resistance
  • RES 2: 0.9181 High Sep 24
  • RES 1: 0.9162 High Oct 7
  • PRICE: 0.9111 @ 16:55 BST Oct 7
  • SUP 1: 0.9044 Low Sep 29 / Oct 2
  • SUP 2: 0.9025 Low Sep 28 and the bear trigger
  • SUP 3: 0.9000 Round number support
  • SUP 4: 0.8967 76.4% retracement of the Sep 3 - 11 rally

EURGBP is firmer and broke above trendline resistance to firm the outook. Last week's activity defined key support at 0.9025, Sep 28 low. A price pattern, a doji candle, on Sep 28 highlights a potential reversal. This was reinforced by Wednesday's rally above 0.9127/57 resistance drawn off the Sep 11 high and the Sep 30 high. This leaves 0.9220, Sep 22 high as the next upside target. Weakness below 0.9025 reinstates a bearish threat and would open sub 0.9000 levels.

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