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Bearish Trend Conditions Dominate

EURGBP TECHS
  • RES 4: 0.9093 High Dec 29
  • RES 3: 0.9085 High Jan 6
  • RES 2: 0.8955/96 50-day EMA / High Jan 12
  • RES 1: 0.8900/25 20-day EMA / High Jan 18 and key resistance
  • PRICE: 0.8816 @ 16:17 GMT Feb 2
  • SUP 1: 0.8796 Low Feb 2
  • SUP 2: 0.8773 1.0% 10-dma envelope
  • SUP 3: 0.8759 Low May 12, 2020
  • SUP 4: 0.8684 2.0% 10-dma envelope

EURGBP printed lower lows Tuesday, reaffirming the bearish case as the cross printed a new 2021 low. Further weakness is seen likely with the 0.8800 handle giving way, turning focus to 0.8759, the May 12 low from last year. Moving average studies are also pointing south reinforcing current trend conditions. On the upside, a firm resistance has been defined at 0.8925, the Jan 18 high where a break is still required to ease the bearish pressure.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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