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Breaching The 100 DMA

EURGBP TECHS
  • RES 4: 0.8670 High Jul 20 and key resistance
  • RES 3: 0.8659 High Jul 21
  • RES 2: 0.8618 76.4% retracement of the Jul 20 - Aug 10 sell-off
  • RES 1: 0.8603 High Sep 01
  • PRICE: 0.8595 @ 06:21 BST Sep 2
  • SUP 1: 0.8543 Low Aug 24
  • SUP 2: 0.8506 Low Jul 19
  • SUP 3: 0.8484 Low Aug 16
  • SUP 4: 0.8450 Low Aug 10 and a key support

EURGBP maintains a positive S/T tone and traded higher Wednesday. The cross continues to pull away from the 20- and 50-day EMAs breached recently. Note that the cross has also progressed through the 100-dma at 0.8588. A break of this average strengthens a bullish case and opens 0.8618 next, a Fibonacci retracement. On the downside, key support has been defined at 0.8543, Aug 24 low. A break would signal a reversal to bearish.

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