Bear flag or base building?:....>

EURO-STERLING TECHS: Bear flag or base building?:

*RES 3: 0.9184/9207 High Aug 22 / Low Aug 8

*RES 2: 0.9169 1.0% 10-dma envelope

*RES 1: 0.9149 Intraday High

*PRICE: 0.9120 @ 08:28 GMT Sep 3

*SUP 1: 0.9016 Low Aug 27

*SUP 2: 0.9006/00 38.2% May6-Aug12 rally/Round number support

*SUP 3: 0.8946 Low Jul 26

EURGBP is still trading in the area marked by key trendline support drawn off

the May 6 low and the 50-dma. The current consolidation is either, a bear flag

that suggests prices will likely move below t 0.9016 to confirm a resumption of

the bear trend since Aug 12. This would open 0.9000 and the late July lows of

0.8946 / 0.8892. Alternatively, the consolidation is base building, a break of

0.9123 would provide some relief from the existing bearish threat and open

0.9184.