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Gains Considered Corrective

EURGBP TECHS
  • RES 4: 0.8749 50.0% retracement of the Feb 3 - Jun 19 downleg
  • RES 3: 0.8719 High May 23 and a congestion high
  • RES 2: 0.8681/8701 100-dma / High Jul 19
  • RES 1: 0.8656 High Aug 3
  • PRICE: 0.8612 @ 16:25 BST Aug 3
  • SUP 1: 0.8544 Low Jul 27
  • SUP 2: 0.8513 1.0% 10-dma envelope
  • SUP 3: 0.8504 Low Jul 11 and key support
  • SUP 4: 0.8471 Low Aug 29 2022

Short-term gains in EURGBP appear to be a correction. Recent bearish price, between Jul 19 - 27, highlights a bearish threat and the latest move lower resulted in a breach of both the 20-day and 50-day EMAs. A resumption of weakness would expose 0.8504, the Jul 11 low and a key support. Initial firm resistance is at 0.8637, the Jul 25 high. Clearance of this level would expose resistance at 0.8701.

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