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Outlook Remains Bullish

EURGBP TECHS
  • RES 4: 0.8721 High Apr 26
  • RES 3: 0.8703 1.236 proj of the Aug 10 - Sep 7 - Sep 16 rally
  • RES 2: 0.8670 High Jul 20 and key resistance
  • RES 1: 0.8658 High Sep 29
  • PRICE: 0.8605 @ 06:27 BST Oct 1
  • SUP 1: 0.8565/26 50-day EMA / Low Sep 28
  • SUP 2: 0.8501 Low Sep 16
  • SUP 3: 0.8495/84/95 1.0% 10-dma envelope / Low Aug 16
  • SUP 4: 0.8450 Low Aug 10

Despite yesterday's move lower, the EURGBP short-term outlook remains bullish. This follows the strong rally on Sep 28 that resulted in a breach of resistance at 0.8613/14, Sep 22 / Sep 7 high. Scope is seen for an extension towards resistance at 0.8670, Jul 20 high and the next important near-term resistance. On the downside, the Sep 28 low of 0.8526, while far off, is support. A break would reinstate a bearish theme.

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