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50-Day EMA Tested

GBPUSD TECHS
  • RES 4: 1.2814 2.0% 10-dma envelope
  • RES 3: 1.2767 61.8% of the Jun 1 ‘21 - Sep 26 ‘22 downtrend
  • RES 2: 1.2680 High May 10 and the bull trigger
  • RES 1: 1.2547/2641 High May 16 / 11
  • PRICE: 1.2403 @ 16:10 BST May 18
  • SUP 1: 1.2402 Low May 18
  • SUP 2: 1.2407 50-day EMA
  • SUP 3: 1.2353/45 Low Apr 17 / 10 and a key support
  • SUP 4: 1.2275 Low Apr 3

A short-term corrective cycle in GBPUSD remains in play following the pullback from last week’s high of 1.2680, on May 10. Yesterday’s low print reinforces the short-term bearish theme. Price has traded through the 50-day EMA which intersects at 1.2407 - a key short-term support. A clear break of this average would strengthen bearish conditions to open Apr 17’s 1.2353. Initial resistance is at 1.2547, the May 16 high.

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