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Strong Corrective Bounce Likely A Correction

  • RES 4: 0.9107 High Oct 23
  • RES 3: 0.9069 1.0% 10-dma envelope
  • RES 2: 0.9048/69 Trendline drawn off the Sep 11 high / High Nov 5
  • RES 1: 0.9006 20-day EMA
  • PRICE: 0.8976 @ 16:17 GMT Nov 16
  • SUP 1: 0.0.8903/8861 Low Nov 12 / Low Nov 11
  • SUP 2: 0.8830 Low May 15
  • SUP 3: 0.8803 Low May 13
  • SUP 4: 0.8748 61.8% retracement of the Feb - March Rally

EURGBP rallied sharply higher on Nov 12, extending the recovery from the Nov 11 low of 0.8861. Although the recent sharp bounce displays some reversal features, the move higher is considered corrective. The cross needs to clear its trendline resistance drawn off the Sep 11 high to signal a reversal. The line intersects at 0.9048. Key support has been defined at 0.8861, Nov 11 low. A break would resume the 2-month downtrend.

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