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Bearish Despite Thursday’s Bounce

EURGBP TECHS
  • RES 4: 0.8875 High Apr 25 and key short-term resistance
  • RES 3: 0.8835 High May 3
  • RES 2: 0.8792 50-day EMA
  • RES 1: 0.8735/69 High May 11 / 20-day EMA
  • PRICE: 0.8726 @ 06:44 BST May 12
  • SUP 1: 0.8661 Low May 10
  • SUP 2: 0.8649 76.4% retracement of the Dec 1 - Feb 3 bull run
  • SUP 3: 0.8593 Low Dec 15 2022
  • SUP 4: 0.8562 Low Dec 13 2022

EURGBP trend conditions remain bearish following this week’s extension lower and despite Thursday’s bounce. The cross has cleared key support at 0.8719, the Mar 15 low. This confirms a resumption of the bear cycle that started Feb 3 and opens 0.8649, a Fibonacci retracement. On the upside, a key resistance is seen at 0.8835, the May 3 high. A break would ease a bearish threat. Initial firm resistance is seen at 0.8769, the 20-day EMA.

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