EURGBP TECHS: Bullish Outlook

• RES 4: 107.235 High Oct 22
• RES 3: 107.175 High Oct 24 
• RES 2: 107.037/073 20- and 50-day EMA values
• RES 1: 107.010 Low Oct 30   
• PRICE: 106.980 @ 06:16 GMT Nov 18
• SUP 1: 106.945 Low Nov 17   
• SUP 2: 106.960 Low Oct 2  
• SUP 3: 106.945 Low Oct 1
• SUP 4: 106.920 Low Sep 25 and a key support  

A short-term bear cycle in Schatz futures remains intact and last week’s fresh cycle low reinforces bearish conditions. The move down paves the way for an extension towards 106.920, the Sep 25 low and a key support. Clearance of this level would strengthen a bear theme. Initial firm resistance to watch is 107.037, the 20-day EMA. Resistance at the 50-day EMA is at 107.073. The area between the two averages represents a key short-term resistance zone.

• RES 4: 1.3368 50.0% retracement of the Sep 17 - Nov 4 bear leg    
• RES 3: 1.3303 50-day EMA   
• RES 2: 1.3284 38.2% retracement of the Sep 17 - Nov 4 bear leg 
• RES 1: 1.3203/16 20-day EMA / High Nov 13
• PRICE: 1.3161 @ 06:22 GMT Nov 18
• SUP 1: 1.3085/10 Low Nov 12 / Low Nov 4 & 5 and the bear trigger 
• SUP 2: 1.2971 1.382 proj of the Sep 17 - 25 - Oct 1 price swing
• SUP 3: 1.2945 50.0% retracement of the Jan 13 - Jul 1 bull leg
• SUP 4: 1.2877 1.618 proj of the Sep 17 - 25 - Oct 1 price swing          

A key short-term resistance in GBPUSD at 1.3203, the 20-day EMA, remains intact. It has been pierced, a clear break of it would signal scope for a stronger corrective cycle and expose the 50-day EMA, at 1.3303. Moving average studies remain in a bear-mode condition and continue to highlight a dominant downtrend. A reversal would signal the end of the correction and a resumption of the bear leg. The bear trigger is 1.3010, the Nov 4 and 5 low.