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EUR/GBP - Don't count of Support Here

EUR/GBP has been bearish this past couple of weeks, falling to a common support around 0.8740. But I would not rely on support here outside of the very short-term.

EUR/GBP Daily Chart

(click to enlarge)

Support:
- As price falls back to 0.8740, we are seeing some support over the past couple of sessions.
- After all, this is a common support and where the 200-day simple moving average reside at the moment.
- However, the fact that price failed to clear above 0.90 before, and that the RSI held under 60, suggests bears are in charge.
- Therefore, I would not expect a bounce off of 0.8740 to be higher than 0.8850, a support/resistance pivot.
- On the other hand, a break below 0.8740 would open up the 0.8330 common support area, but we might also see buying around a common support area around 0.85.