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Corrective Bounce

EURO-STERLING TECHS
  • RES 4: 0.9044 High Aug 24 and a key resistance
  • RES 3: 0.8987 50-day EMA
  • RES 2: 0.8966/75 20-day EMA / High Aug 28
  • RES 1: 0.8952 High Sep 4
  • PRICE: 0.8944 @ 06:03 BST Sep 7
  • SUP 1: 0.8864 Low Jun 9 and 61.8% of the Apr 30 - Jun 29 rally
  • SUP 2: 0.8830 Low Jun 15
  • SUP 3: 0.8790 76.4% retracement of the Apr 30 - Jun 29 rally
  • SUP 4: 0.8759 Low May 12

EURGBP maintains a bearish theme despite the recovery late last week. Recent bearish pressure resulted in the cross trading to a low just ahead of 0.8864, Jun 9 low and the 61.8% retracement of the Apr 30 - Jun 29 rally. A breach of this level would further reinforce a bearish theme and open 0.8830, May 15 low. On the upside, initial firm resistance is seen at the 0.8966 area, the 20-day EMA.

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