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TECHS: EURGBP: Bullish Engulfing Reversal

FOREX
  • RES 4: 0.9149 Oct 20 high
  • RES 3: 0.9107 High Oct 23
  • RES 2: 0.9085 Trendline resistance drawn off the Sep 11 high
  • RES 1: 0.9066 Intraday high
  • PRICE: 0.9054 @ 05:54 GMT Nov 5
  • SUP 1: 0.9024 Intraday low
  • SUP 2: 0.8946 Low Nov 4 and the key near-term support
  • SUP 3: 0.8924 Low Sep 7
  • SUP 4: 0.8900 Low Sep 4

EURGBP yesterday traded lower in Asia-Pac hours confirming an extension of the current downtrend, before the price action gave way to a decent bounce into the close. This activity is potentially significant, in pattern terms yesterday's candle line is a bullish engulfing reversal. If correct, it signals a floor at 0.8946, yesterday's low. Further gains would open 0.9107, Oct 23 low. A break of 0.8946 would negate the pattern and resume the downtrend.

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