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Trendline Break Counters Bearish Outlook

EURO-STERLING TECHS
  • RES 4: 0.9183 61.8% retracement of the Sep 11 - Oct 14 sell-off
  • RES 3: 0.9169 1.0% 10-dma envelope
  • RES 2: 0.9162 High Oct 7
  • RES 1: 0.9149 Oct 20 high
  • PRICE: 0.9128 @ 06:15 BST Oct 21
  • SUP 1: 0.9071 50-day EMA
  • SUP 2: 0.9007 Low Oct 14
  • SUP 3: 0.9000 Round number support
  • SUP 4: 0.8967 76.4% retracement of the Sep 3 - 11 rally

EURGBP technical conditions have improved for bulls following this week's gains. The break above 0.9122 yesterday, Oct 14 high confirms a clear break of trendline resistance drawn off the Sep 11 high turning the outlook more positive for now. Further gains would open 0.9162, Oct 7 high and 0.9183, a Fibonacci retracement. For bears to regain any momentum, the cross needs to break through the bear trigger at 0.9007, Oct 14 low.

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