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Corrective Cycle

EURGBP TECHS
  • RES 4: 0.8768 High May 5
  • RES 3: 0.8736 50.0% retracement of the Feb 3 - Aug 23 downleg
  • RES 2: 0.8719 High May 23
  • RES 1: 0.8706 High Sep 26 and the bull trigger
  • PRICE: 0.8677 @ 15:37 BST Sep 29
  • SUP 1: 0.8630 Low Sep 28 and the 20-day EMA
  • SUP 2: 0.8611/8569 50-day EMA / Low Sep 15 and a key support
  • SUP 3: 0.8558 Low Sep 11
  • SUP 4: 0.8524 Low Sep 06

EURGBP has pulled back from its recent high earlier this week. A short-term bull cycle remains in play and the move lower is considered corrective - for now. Recent gains resulted in a breach of resistance at 0.8611, the Aug 30 high. This was followed by a move above 0.8670, trendline resistance drawn from the Feb 3 high. A clear break of the trendline would strengthen bullish conditions. Initial firm support lies at 0.8630, the 20-day EMA.

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

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