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Bear Flag Formation

  • RES 4: 0.8725 High Nov 22
  • RES 3: 0.8690 High Nov 27
  • RES 2: 0.8637 20-day EMA
  • RES 1: 0.8616 Low Oct 11
  • PRICE: 0.8564 @ 06:09 GMT Dec 12
  • SUP 1: 0.8549 Low Dec 11
  • SUP 2: 0.8524 Low Sep 5
  • SUP 3: 0.8493 Low Aug 23 and a key support
  • SUP 4: 0.8421 2.0% 10-dma envelope

EURGBP is consolidating. The trend outlook remains bearish and the recent sideways move appears to be a bear flag formation - a bearish continuation signal. Moving average studies are in a bear-mode position too, highlighting a downtrend. Attention is on 0.8558, 76.4% of the Aug 23 - Nov 20 bull leg. It has been pierced, a clear break would open 0.8524, the Sep 5 low. Initial resistance is seen 0.8616, Oct 11 low.

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