EURGBP TECHS: Bearish Break
- RES 4: 0.8835 High May 3 2023
- RES 3: 0.8800 Round number resistance
- RES 2: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing
- RES 1: 0.8735/8769 High Aug 3 / High Jul 27 and the bull trigger
- PRICE: 0.8605 @ 15:43 BST Aug 14
- SUP 1: 0.8598 Low Aug 14
- SUP 2: 0.8562 50% retracement May-Jul upleg
- SUP 3: 0.8540 Low Jun 30
- SUP 4: 0.8508 Low Jun 27
EURGBP has taken out key support through the 0.8611-13 level, marking both the 50-day EMA as well as horizontal support drawn off the late July lows. Should this weakness persist, the bearish threat turns to 0.8551, the 50% retracement for the May-July upleg. The waning bullish trend is evident in the 20-day EMA beginning to turn lower, signalling the risk of further pressure in the price. For now, key resistance and the bull trigger remains at 0.8769, the Jul 27 high.
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GBPUSD TECHS: Trades Through Trendline Support
- RES 4: 1.3835 High Oct 20 2021
- RES 3: 1.3800 Round number resistance
- RES 2: 1.3681/3789 High Jul 04 / 01 and the bull trigger
- RES 1: 1.3572 20-day EMA
- PRICE: 1.3391 @ 16:32 BST Jul 15
- SUP 1: 1.3375 Low Jul 14
- SUP 2: 1.3371 Low Jun 23 and a key short-term support
- SUP 3: 1.3335 Low May 20
- SUP 4: 1.3245 Low May 19
A softer short-term tone in GBPUSD remains in place and this week’s move down marks an extension of the current corrective bear leg. The pair has breached both 20- and 50-day EMAs, exposing trendline support at 1.3430. The trendline - drawn from the Jan 13 low - has been pierced, a clear break of it would strengthen a bearish threat and expose 1.3371 initially, the Jun 23 low. Initial firm resistance to watch is 1.3681, the Jul 4 high.
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