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Bearish Outlook

EURGBP TECHS
  • RES 4: 0.8586 76.4% retracement of the Apr 23 - Jun 14 bear leg
  • RES 3: 0.8568 High May 20
  • RES 2: 0.8552 1.0% 10-dma envelope
  • RES 1: 0.8497/99 50-day EMA / High Jul 1
  • PRICE: 0.8450 @ 07:28 BST Jul 8
  • SUP 1: 0.8431 Low Jun 25
  • SUP 2: 0.8397 Low Jun 14 and the bear trigger
  • SUP 3: 0.8388 Low Aug 17 2022
  • SUP 4: 0.8366 2.236 proj of the Apr 23 - 30 - May 9 price swing

EURGBP is starting the week on a bearish note as it extends the move lower that started Jul 1. A key resistance at 0.8497, the 50-day EMA, remains intact A clear breach of it is required to undermine the current bearish theme and signal scope for a stronger recovery. Gains since Jun 14 appear to be a correction. Initial firm support to watch lies at 0.8431, the Jun 25 low. A breach of this support would open 0.8397, the Jun 14 low and bear trigger.

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