Pullbacks merely a correction...>

EURO-STERLING TECHS: Pullbacks merely a correction at present:

*RES 3: 0.9061 High Jan 11

*RES 2: 0.9000 Psychological round number

*RES 1: 0.8974 High Jun 18

*PRICE: 0.8878 @ 08:38 GMT June 20

*SUP 1: 0.8871 Low May 12

*SUP 2: 0.8861 20-day EMA and general key support area

*SUP 3: 0.8827 Low Jun 6

EURGBP pulled back from the highs from the beginning of this week, resulting in

a trendline support break. Momentum studies too have moved out of overbought

territory. Whether this all adds up to a developing bearish scenario is perhaps

too early to tell. The 50D EMA intersects at 0.8861 and this area represents a

support where bullish interest should again develop. A failure to rebound off

0.8860 would reinforce the bearish case. For now, pullbacks are seen to be

corrective.