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EURGBP: Sells Off, Broadly Biased To THe Downside Towards The 0.8485 Level.

EURGBP-The cross is now preparing to return to the 0.8485 level, its Nov 10’2011 high after seeing a strong sell off following a reversal of its intra day gains on Wednesday. A clearance of there (0.8485) will resume its medium term downtrend and extend price declines towards the 0.8355 level, its Feb’2011 low. Further down, its Jan’2011 low at 0.8284 will come in as the next downside target. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the cross will have to return above the 0.8662 level to annul its bear pressure and then trigger further upside offensive towards the 0.8794 level, its Sept 21’2011 high. Further out, support stands at the 0.8885 level, its Aug 10’2011 high and subsequently the 0.9083 level, its Jun 01’2011 high. All in all, the cross continues to maintain its medium term downtrend theme as it looks to return to the 0.8485 level.