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Bearish Extension

EURGBP TECHS
  • RES 4: 0.8925 High Jan 18 and key resistance
  • RES 3: 0.8893 50-day EMA
  • RES 2: 0.8840 High Feb 4
  • RES 1: 0.8797/8814 High Feb 9 / 20-day EMA
  • PRICE: 0.8710 @ 05:55 GMT Feb 16
  • SUP 1: 0.8706 Intraday low
  • SUP 2: 0.8691 Low May 5, 2020
  • SUP 3: 0.8671 Low Apr 30, 2020 and a key support
  • SUP 4: 0.8595 2.0% 10-dma envelope

EURGBP is lower again today and has reached 0.8711, reinforcing the underlying bearish trend. Moving average conditions remain in a bear mode highlighting the current path of least resistance. The focus is on 0.8700 next and a likely breach of this handle. On the upside, initial firm resistance is at 0.8797, Feb 9 high and 0.8814, the 20-day EMA. A break of this resistance zone would signal a S/T base and allow for a corrective bounce. Bearish!

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