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Unwinding An Oversold Trend Condition

EURGBP TECHS
  • RES 4: 0.8768 High May 5
  • RES 3: 0.8719 High May 23
  • RES 2: 0.8666 50-day EMA
  • RES 1: 0.8636 High Jun 5
  • PRICE: 0.8602 @ 16:25 BST Jun 22
  • SUP 1: 0.8518 Low Jun 19 and the bear trigger
  • SUP 2: 0.8477 1.0% 10-dma envelope
  • SUP 3: 0.8454 76.4% retracement of the Mar - Sep 2022 bull cycle
  • SUP 4: 0.8408 Low Aug 24 2023

The primary trend direction in EURGBP remains down, however, a corrective cycle has resulted in a recovery from recent lows. This is allowing a recent oversold condition to unwind. Resistance at the 20-day EMA has been breached. A continuation higher would expose the 50-day EMA at 0.8666. The medium-term trend outlook remains bearish and a break of 0.8518, the Jun 19 low, would confirm a resumption of the trend.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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