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EUR/GBP On Track to Break Key Support

GBP
  • Greenback mimicking the pullback in US 10y yields off the overnight high by fading into the NY crossover and aiding EUR/USD, GBP/USD to touch (or approach) the best levels of the Friday session.
  • GBP/USD clearance here puts the pair at the best levels since early September and as noted earlier this week, the break of the Nov 14 higher confirmed a resumption of the uptrend that initially targets 1.2589, 50.0% of the Jul 14 - Oct 4 bear leg.
  • Perhaps more notably for GBP, EUR/GBP has shown below the 50-dma, and a close at current or lower levels would cement a break of support that's held on a number of occasions between the September - November leg higher. 0.8650 is the level to watch to confirm a bearish reversal in the cross.

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