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Bearish Risk Despite Bounce

EURGBP TECHS
  • RES 4: 0.9265 High Sep 14
  • RES 3: 0.9217/30 High Dec 21/11 and key resistance
  • RES 2: 0.9156 High Dec 22
  • RES 1: 0.9112 High Dec 23
  • PRICE: 0.9076 @ 06:23 GMT Dec 29
  • SUP 1: 0.8953 Low Dec 24
  • SUP 2: 0.8929 Low Dec 1
  • SUP 3: 0.8867 Low Nov 23 and a key support
  • SUP 4: 0.8830 Low May 15

EURGBP traded higher yesterday. Last week, the cross cleared a key support at 0.8983, Dec 4 / 7 low. The move through this level highlights a bearish chart feature and the risk of a deeper sell-off. Clearance of 0.8953, Dec 24 low would pave the way for a weakness towards 0.8867, the Nov 23 low. On the upside initial resistance is at 0.9112, Dec 23 high and 0.9156, Dec 22 high. Clearance of these hurdles would expose the 0.9230 Dec high.

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