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Recent Gains Considered Corrective

EURGBP TECHS
  • RES 4: 0.8670 High Jul 20 and key resistance
  • RES 3: 0.8659 High Jul 21
  • RES 2: 0.8618 76.4% retracement of the Jul 20 - Aug 10 sell-off
  • RES 1: 0.8593/94 100-dma / High Aug 23
  • PRICE: 0.8562 @ 20:34 BST Aug 24
  • SUP 1: 0.8530/06 20-day EMA / Low Jul 19
  • SUP 2: 0.8484/50 Low Aug 16 / Low Aug 10 and the bear trigger
  • SUP 3: 0.8433 1.0% 10-dma envelope
  • SUP 4: 0.8430 Low Feb 27, 2020

Last week EURGBP traded back above both the 20- and 50-day EMAs. The move signals scope for further gains near-term with the focus on the 100-dma next at 0.8593 - the average was tested Monday. Gains are still considered corrective though and from a trend perspective, the outlook is bearish. A return lower and a break of initial firm support at 0.8506, Aug 19 low would signal a resumption of bearish pressure.

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