Bear Threat Remains Present

• RES 4: 1.2680 High May 10 and the bull trigger
• RES 3: 1.2641 High May 11
• RES 2: 1.2592 76.4% retracement of the May 10 - 25 bear cycle
• RES 1: 1.2545 High Jun 2 and key resistance
• PRICE: 1.2455 @ 16:12 BST Jun 7
• SUP 1: 1.2369/2308 Low Jun 5 / Low May 25 and the bear trigger
• SUP 2: 1.2275 Low Apr 3
• SUP 3: 1.2242 50.0% retracement of the Mar 8 - May 10 bull run
• SUP 4: 1.2213 Low Mar 27

Markets retained a sell-on-rallies theme into the Wednesday close, with the 1.25 handle holding ahead of the London close. The pullback in GBPUSD from last week’s high highlights a bearish threat and key S/T resistance has been defined at 1.2545, the Jun 2 high. Note that, despite a brief test above it last week, the 61.8% retracement of the May 10 - 25 downleg at 1.2538 remains intact - an important short-term resistance. A continuation lower would open 1.2308, May 25 low and key support. Clearance of last Friday’s high is required to reinstate the recent bull cycle.