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.
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EURGBP slipped through the London close, narrowing the gap with first support at Friday’s 0.8668. The trend condition is bearish and the latest pause appears to be a bear flag. The recent breach of 0.8719, Mar 15 low, confirmed a resumption of the bear cycle and this has opened 0.8649, a Fibonacci retracement. Initial firm resistance is at 0.8729 the 20-day EMA. The 50-day EMA intersects at 0.8767 where a clear break is required to signal a reversal.