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Bucks Bearish Sequence

EURGBP TECHS
  • RES 4: 0.8668 High Mar 3
  • RES 3: 0.8646 High Mar 24 and the S/T reversal trigger
  • RES 2: 0.8572 High Mar 26
  • RES 1: 0.8564 20-day EMA
  • PRICE: 0.8561 @ 17:10 GMT Apr 6
  • SUP 1: 0.8472 Low Apr 5
  • SUP 2: 0.8453 3.0% Lower Bollinger Band
  • SUP 3: 0.8430 Low Feb 27, 2020
  • SUP 4: 0.8356 Low Feb 26

Despite erring bearishly at the beginning of the week, EURGBP bounced Tuesday and narrowed the gap with first resistance at the 20-day EMA of 0.8564. This ends the price sequence of lower lows and lower highs, which bucks the bearish sentiment somewhat. The cross has breached the 38.2% retracement of the 2015 - 2020 rally at 0.8521. An extension lower would open 0.8430, the Feb 27, 2020 low. Firm trend resistance is seen at 0.8646, Mar 24 high where a break is needed to signal a short-term reversal.

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

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