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Rally Fades, Downside Exposed

EURGBP TECHS
  • RES 4: 0.8797 High Feb 9
  • RES 3: 0.8742 50-day EMA
  • RES 2: 0.8668/8731 High Mar 3 / High Feb 26 and the S/T bull trigger
  • RES 1: 0.8640 High Mar 16
  • PRICE: 0.8561 @ 16:09 GMT Mar 16
  • SUP 1: 0.8548 Low Mar 11
  • SUP 2: 0.8541 Low Feb 24 and the bear trigger
  • SUP 3: 0.8522 Low Feb 28
  • SUP 4: 0.8495 3.0% Lower Bollinger Band

EURGBP traded well in the European morning, edging higher to touch 0.8640 before the rally faltered and price action reversed. The outlook is bearish. Technical signals continue to highlight a bearish condition and attention is on 0.8541, Feb 24 low. A break of this support would resume the downtrend and expose 0.8495, a volatility based support area. On the upside, firm short-term resistance has been defined at 0.8731, Feb 26 high. A break would allow for a stronger corrective bounce leaving the 50-day EMA at 0.8742 exposed.

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