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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: 0.8654 50-day EMA
  • PRICE: 0.8613 @ 16:58 BST May 14
  • 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 hit new weekly lows Thursday, printing 0.8561 before recovering slightly into the Friday close. 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 0.8654 50-day EMA.

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