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20-Day EMA Marks Key Short-Term Resistance

GBPUSD TECHS
  • RES 4: 1.2800 50-day EMA
  • RES 3: 1.2772 High Apr 26
  • RES 2: 1.2638 High May 4 and a key resistance
  • RES 1: 1.2494/2501 20-day EMA / High May 18
  • PRICE: 1.2398 @ 06:11 BST May 19
  • SUP 1: 1.2317/2156 Low May 17 / Low May 13 and the bear trigger
  • SUP 2: 1.2081 76.4% retracement of the Mar ‘20 - Jun ‘21 uptrend
  • SUP 3: 1.2000 psychological round number
  • SUP 4: 1.1903 1.00 proj of the Apr 14 - 28 - May 4 price swing

GBPUSD traded high Tuesday but reversed its direction Wednesday as 1.2501 capped gains. Tuesday’s move higher appeared to improve short-term conditions for bulls, however the reversal lower from recent highs, highlights a potential resumption of the primary downtrend. A continuation lower would open 1.2156, the May 13 low and the bear trigger. Clearance of the 20-day EMA, at 1.2494 today, is required to reinstate a bullish theme.

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