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Bearish Price Structure

EURGBP TECHS
  • RES 4: 0.9292 High Sep 11 2020
  • RES 3: 0.9066/9266 High Sep 28 / High Sep 26 and key resistance
  • RES 2: 0.8980 High Sep 29
  • RES 1: 0.8733/8867 20-day EMA / High Oct 12
  • PRICE: 0.8680 @ 15:31 BST Oct 20
  • SUP 1: 0.8559 76.4% retracement of the Aug 2 - Sep 26 rally
  • SUP 2: 0.8522 Low Aug 30
  • SUP 3: 0.8471 Low Aug 28
  • SUP 4: 0.8408 Low Aug 24

EURGBP continues to trade above its recent lows, with the price briefly topping the 20-day EMA Thursday. Nonetheless, price action soon reversed, keeping the outlook bearish for now. This follows the reversal from 0.9266, the Sep 26 high. Support at 0.8649, the Oct 4 low, has been breached and price has traded below the 50-day EMA. This suggests scope for an extension lower and the focus is on 0.8559, a Fibonacci retracement. Key short-term resistance has been defined at 0.8867, Oct 12 high, where a break is required to reinstate a bullish theme.

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