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Bullish Outlook

EURGBP TECHS
  • RES 4: 0.8835 High May 3
  • RES 3: 0.8793 61.8% retracement of the Feb 3 - Aug 23 downleg
  • RES 2: 0.8768 High May 5
  • RES 1: 0.8741 High Oct 20
  • PRICE: 0.8705 @ 16:06 BST Oct 23
  • SUP 1: 0.8660 20-day EMA
  • SUP 2: 0.8633/16 50-day EMA / Low Oct 11 and the bear trigger
  • SUP 3: 0.8569 Low Sep 15 and a key support
  • SUP 4: 0.8558 Low Sep 11

EURGBP traded higher last Thursday and in the process breached key short-term resistance at 0.8706, the Sep 26 high and a bull trigger. That break confirmed a resumption of the bull cycle and reinforced the bullish importance of the recent break of trendline resistance, drawn from the Feb 3 high. A continuation higher would open 0.8793,. A Fibonacci retracement. On the downside, initial firm support is seen at 0.8660, the 20-day EMA.

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