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Nearing Oversold Levels

EURGBP TECHS
  • RES 4: 0.8835 High May 3
  • RES 3: 0.8814 High May 4
  • RES 2: 0.8748 50-day EMA
  • RES 1: 0.8706 20-day EMA
  • PRICE: 0.8610 @ 16:11 BST May 31
  • SUP 1: 0.8600 Low May 31
  • SUP 2: 0.8593 Low Dec 15 2022
  • SUP 3: 0.8562 Low Dec 13 2022
  • SUP 4: 0.8547 Low Dec 1 2022 and key support

EURGBP printed a fresh 2023 low Wednesday, printing a fourth consecutive session of lowers lows. The 14d RSI for the cross is on the cusp of becoming technically oversold for the first time since March 2021 - and bearish developments in the DMA space also signal short-term downside momentum: the 50- and 200-dmas are on the verge of forming a death cross (50-dma < 200-dma). The focus is on 0.8593, the Dec 15 low. Initial firm resistance is at 0.8706 the 20-day EMA.

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

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