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At Risk of Bearish Breakout

EURGBP TECHS
  • RES 4: 0.8791/8835 High Feb 12 / 2.0% 10-dma envelope
  • RES 3: 0.8731 High Feb 26
  • RES 2: 0.8701/21 High May 7 / High Apr 26 and the bull Trigger
  • RES 1: 0.8660 50-day EMA
  • PRICE: 0.8600 @ 16:57 BST May 13
  • SUP 1: 0.8561 Low May 12
  • SUP 2: 0.8475 2.0% 10-dma envelope
  • SUP 3: 0.8472 Low Apr 5 and the bear trigger
  • SUP 4: 0.8430 Low Feb 27, 2020

EURGBP held inside the week's range Thursday, after extended losses mid-week to take out key support at 0.8589, Apr 19 low. This sees the cross move out of its recent range and confirm a bearish breakout. This suggests scope for a deeper pullback, potentially towards the key support at 0.8472, Apr 5 low. On the upside, the key resistance and bull trigger is unchanged at 0.8721, Apr 26 high. Initial resistance is at 0.8660.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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