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Pennant formation: *RES 4: 0.9276.....>

EURO-STERLING
MNI (London)
EURO-STERLING: Pennant formation:
*RES 4: 0.9276 High Aug 14
*RES 3: 0.9325 High Aug 12 and bull trigger
*RES 2: 0.9207 Low Aug 8
*RES 1: 0.9090/89 Low Aug16 / Low Jul 31
*PRICE: 0.9042 @ 17:38 GMT Aug 22
*SUP 1: 0.9030/29 Trendline support drawn off the May 6 low/Intraday low
*SUP 2: 0.9000 Round number support/38.2% retracement of May 6 - Aug 12 rally
*SUP 3: 0.8899/92 50% of May 6 - Aug 12 rally/ Low Jul 25
*SUP 4: 0.8873 Jun 20 low
EURGBP has taken a leg lower today after consolidating following last weeks
sell-off. The recent consolidation had appeared to be a pennant which signalled
scope for a move lower. Earlier we traded as low as trendline support from the
May 6 low at 0.9030 before recovering to 0.9060. A break of 0.9030 would see
0.90 (0.9001 base of 2.0% 10-dma envelope) come under pressure ahead of 0.89.
Initial resistance is 0.9207.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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