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Bullish Engulfing Reversal

EURO-STERLING TECHS
  • RES 4: 0.9149 Oct 20 high
  • RES 3: 0.9107 High Oct 23
  • RES 2: 0.9085 Trendline resistance drawn off the Sep 11 high
  • RES 1: 0.9069 Intraday high
  • PRICE: 0.9038 @ 10:45 GMT Nov 5
  • SUP 1: 0.9006 Intraday low
  • SUP 2: 0.8946 Low Nov 4 and the key near-term support
  • SUP 3: 0.8924 Low Sep 7
  • SUP 4: 0.8900 Low Sep 4

EURGBP is firmer today following the rebound off yesterday's 0.8946 low. Yesterday's price action is potentially significant. In pattern terms yesterday's candle line is a bullish engulfing reversal. If correct, it signals a floor has been established at 0.8946. Further gains would open 0.9107, Oct 23 high. Note there is a trendline resistance that intersects at 0.9085, drawn off the Sep 11 high. A break of 0.8946 would negate the pattern and resume the downtrend.

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