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Free AccessEUR/GBP Holds Below 10-dma, Supports Bearish Outlook
- Recovery off last Thursday's low of Gbp0.8548 saw a spike higher Friday to Gbp0.8599, though move managed to remain below its key 10-dma (Friday Gbp0.8601)
- Whilst rate holds below its 10-dma (currently at Gbp0.8593) seen keeping the outlook bearish.
- This failure has seen the cross drift off through Asia and into Europe, the rate pressing down to Gbp0.8567 at writing.
- Poor election results at the weekend for Merkel's CDU, Italy moving to regional lock downs due to COVID infection rate rise seen weighing on the EUR, whilst UK vaccine roll out, gradual lifting of lock down restrictions and a BOE MPC meeting Thursday expected to be optimistic supporting the GBP.
- Support Gbp0.8554/41, a break of this area to expose Gbp0.8522, with the base of the 1.0% 10-dma envelope currently coming through at Gbp0.8506.
- Resistance Gbp0.8593/0.8600, Gbp0.8627.
- MNI Techs: EURGBP is still trading sideways. The outlook remains bearish with the cross trading closer to recent lows. Technical signals continue to highlight a bearish condition and attention is on 0.8541, Feb 24 low. A break of this support would resume the downtrend. On the upside, firm short-term resistance has been defined at 0.8731, Feb 26 high. A break would allow for a stronger corrective bounce and open 0.8749, the 50-day EMA.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.