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Extending Bear Leg

EURGBP TECHS
  • RES 4: 0.8658 High Sep 29 and a key resistance
  • RES 3: 0.8624 High Oct 1
  • RES 2: 0.8600 High Dec 8 and the bull trigger
  • RES 1: 0.8500/53 50-day EMA / High Dec 10 / 14 and key resistance
  • PRICE: 0.8420 @ 16:33 GMT Dec 29
  • SUP 1: 0.8402 Low Dec 28
  • SUP 2: 0.8384 1.0% 10-dma envelope
  • SUP 3: 0.8381 Low Nov 22 and the bear trigger
  • SUP 4: 0.8356 Low Feb 26, 2020

EURGBP traded sharply lower on Dec 23 and extended the sell-off following the holiday break. This puts the cross below support at 0.8411 and has strengthened the short-term bearish condition. The move lower opens 0.8384, the 1.0% 10-dma envelope and the key support at 0.8381, Nov 22 low. Initial firm resistance is unchanged at 0.8553, Dec 10 / 14 high. Clearance of this level is required to reinstate the recent bullish theme.

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

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