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EUR/GBP sitting above 0.8550 ahead of UK retail sales

FXstreet.com (Barcelona) - The EUR/GBP foreign exchange cross rate is last at 0.8563, slightly off recent session highs at 0.8569, extending the bounce started early NY session from fresh 6-week lows at 0.8528 and ascending trendline from early May lows, all ahead of later on UK retail sales at 08:30 GMT.

EUR/GBP top has been formed

“On Tuesday EUR/GBP slid through the 55 day moving average at .8584 to the four month support line at .8534,” said analyst at Commerzbank Axel Rudolph, adding: “From there it has since bounced back all the way to the 55 day moving average. Since a fall through the .8576 July 10 low has nonetheless been seen, our forecast of a top having been formed at .8768 on the first day of August, has been confirmed. At present unexpected failure at .8532 will push the .8500 region and the June low at .8470 back into the picture.”

EUR/GBP key technical levels

Immediate resistance to the upside for EUR/GBP shows at recent session highs 0.8569, followed by August 07/Monday's lows at 0.8579, and yesterday's highs at 0.8599. To the downside, closest support lies at recent session lows 0.8544, followed by Tuesday's/yesterday's lows at 0.8533/28, and May 14 highs at 0.8515.

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