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50-Day EMA Support Gives Way

GBPUSD TECHS
  • RES 4: 1.2767 61.8% of the Jun 1 ‘21 - Sep 26 ‘22 downtrend
  • RES 3: 1.2680 High May 10 and the bull trigger
  • RES 2: 1.2547/2641 High May 16 / 11
  • RES 1: 1.2487 20-day EMA
  • PRICE: 1.2366 @ 16:00 BST May 24
  • SUP 1: 1.2360 Low May 24
  • SUP 2: 1.2353/45 Low Apr 17 / 10 and a key support
  • SUP 3: 1.2275 Low Apr 3
  • SUP 4: 1.2242 50.0% retracement of the Mar 8 - May 10 bull run

GBPUSD erased the initial inflation-inspired bounce Wednesday to close lower, showing through nearby support. This reinforces the bearish theme as price breaks below 1.2410, the 50-day EMA. The clear break here strengthens the bearish threat and exposes 1.2345, the Apr 10 low. On the upside, initial resistance is 1.2480, the 20-day EMA. A break above 1.2547, the May 16 high, is required to signal a reversal.

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