Free Trial

Short-Term Pullback Considered Corrective

EURGBP TECHS
  • RES 4: 0.8875 High Apr 25 and a key resistance
  • RES 3: 0.8835 High May 3
  • RES 2: 0.8793 61.8% retracement of the Feb 3 - Aug 23 downleg
  • RES 1: 0.8754 High Oct 31
  • PRICE: 0.8702 @ 06:36 GMT Nov 2
  • SUP 1: 0.8688/83 20-day EMA / Low Nov 1
  • SUP 2: 0.8656/16 50-day EMA / Low Oct 11 and the bear trigger
  • SUP 3: 0.8569 Low Sep 15 and a key support
  • SUP 4: 0.8558 Low Sep 11

The trend condition in EURGBP remains bullish and the pullback from Tuesday’s high appears to be a correction. Support to watch lies at the 20-day EMA, at 0.8688. The cross recently breached resistance at 0.8741, the Oct 20 high, to confirm a resumption of the uptrend that started Aug 23. This signals scope for an extension towards 0.8793, a Fibonacci retracement. Clearance of the 20-day EMA would expose the 50-day EMA, at 0.8656.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.