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Holding Onto Recent Gains

EURGBP TECHS
  • RES 4: 0.8670 High Jul 20 and key resistance
  • RES 3: 0.8659 High Jul 21
  • RES 2: 0.8618 76.4% retracement of the Jul 20 - Aug 10 sell-off
  • RES 1: 0.8589/99 100-dma / High Aug 31
  • PRICE: 0.8580 @ 16:24 BST Aug 31
  • SUP 1: 0.8545 20-day EMA
  • SUP 2: 0.8506 Low Jul 19
  • SUP 3: 0.8484 Low Aug 16
  • SUP 4: 0.8450 Low Aug 10 and a key support

EURGBP is trading closer to recent highs. On Aug 19, the cross breached both the 20- and 50-day EMAs signalling scope for further gains near-term. Attention is on the 100-dma next at 0.8589 that was briefly probed on Aug 23. Gains are still considered corrective though and from a trend perspective, the outlook is bearish. A return lower and a break of support at 0.8506, Aug 19 low would signal a resumption of bearish pressure.

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

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