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The lowest weekly close since August doesn’t mean much to the pound

  • The pound is about to end the week higher against the euro, a long way from the highs.
  • EUR / GBP remains in a downtrend after failing to break through key support.

The EUR/GBP it is poised to post another weekly loss and the lowest close since August. The weekly candle sign is not positive for the pound as it had the weekly close far from the highs.

The EUR / GBP slide found support again around 0.8850 and was followed by a strong bounce at 0.9000 that lost momentum on Friday. The short-term prospects favor some consolidation in the future.

The 0.8850 zone remains the key support. A break to the downside would clear the way for more losses. The next area to watch here is around 0.8815 / 25, the convergence of the 55- and 100-week moving averages.

The bias still favors the downside despite the recovery of the euro. A firm break above 0.9060 / 70 would negate the bearish outlook.

Weekly chart

 

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