EURGBP is in consolidation mode. Recent gains appear to be corrective in nature and a bearish theme is intact. The move down earlier this month resulted in a print below 0.8397, the Jun 14 low and a bear trigger. A clear break of this price level would confirm a resumption of the medium-term downtrend and open 0.8366, a Fibonacci projection. The next firm resistance is seen at 0.8458, the 50-day EMA.
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EURGBP has traded above last week’s high of 0.8478 (Jun 24) and the cross is holding on to its latest gains. Recent gains signal scope for a stronger corrective cycle and sights are on resistance at 0.8503, the 50-day EMA. A clear break of this average would undermine the recent bearish theme. Initial firm support to watch lies at 0.8431, the Jun 25 low. A reversal lower and a break of this support would open 0.8397, the Jun 14 low and bear trigger.
A bearish threat in GBPUSD remains present and the pair continues to trade closer to its recent lows. Recent weakness has resulted in a breach of a key support at 1.2669, the 50-day EMA, signalling scope for a deeper correction towards 1.2584 next, the May 15 low. For bulls, a reversal higher and a break of 1.2860, the Jun 12 high, would resume the uptrend. Initial firm resistance to watch is 1.2740, the Jun 19 high.