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Bearish Risk Still Present

EURGBP TECHS
  • RES 4: 0.9107 High Oct 23
  • RES 3: 0.9050 1.0% 10-dma envelope
  • RES 2: 0.9021/69 Trendline drawn off the Sep 11 high / High Nov 5
  • RES 1: 0.9004 High Nov 12
  • PRICE: 0.8920 @ 17:00 GMT Nov 20
  • SUP 1: 0.8903/8861 Low Nov 12 / Low Nov 11 and the bear trigger
  • SUP 2: 0.8830 Low May 15
  • SUP 3: 0.8803 Low May 13
  • SUP 4: 0.8748 61.8% retracement of the Feb - March Rally

EURGBP is trading lower and at the low end last week's range. The cross rallied sharply Nov 12, extending the recovery from the Nov 11 low of 0.8861. Although this move displays some reversal features, it is likely a correction. A break of trendline resistance at 0.9021, drawn off the Sep 11 high is required to signal a reversal. Key support has been defined at 0.8861, Nov 11 low. Clearance of this level would resume the current downtrend.

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