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Bullish Focus Despite Pullback

EURGBP TECHS
  • RES 4: 0.8627 High Jul 4
  • RES 3: 0.8585 High Jul 21 and a key resistance
  • RES 2: 0.8525 High Jul 25
  • RES 1: 0.8512 High Aug 19
  • PRICE: 0.8424 @ 16:42 BST Aug 23
  • SUP 1: 0.8423 Low Aug 23
  • SUP 2: 0.8388/40 Low Aug 17 / 2 and the bear trigger
  • SUP 3: 0.8313 Low Apr 22
  • SUP 4: 0.8278 2.0% 10-dma envelope and low Apr 14

EURGBP rallied Friday and the move higher resulted in a break of 0.8493, the Aug 12 high. This threatens the recent bearish theme and signals scope for an extension higher, despite this week’s pullback. The cross has traded above the 20- and 50-day EMAs, reinforcing a developing bullish theme. A continuation higher would open 0.8525, Jul 25 high. Initial key support is at 0.8388, the Aug 17 low. A break would reinstate a bearish theme.

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