Bear Threat Remains Present

• RES 4: 1.2881 76.4% retracement of the Jul 14 - Oct 4 bear leg
• RES 3: 1.2827 High Dec 28 and the bull trigger
• RES 2: 1.2775 High Jan 24
• RES 1: 1.2684 High Feb 13
• PRICE: 1.2609 @ 08:58 GMT Feb 21
• SUP 1: 1.2519 Low Feb 5 and the bear trigger
• SUP 2: 1.2500 Low Dec 13
• SUP 3: 1.2432 50.0% retracement of the Oct 4 - Dec 28 bull phase
• SUP 4: 1.2374 Low Nov 17

A bear threat in GBPUSD remains present despite the early bounce this week. The move lower from yesterday’s high, signals the end of the recent corrective bounce. A continuation lower would open 1.2519, the Feb 5 low where a break would confirm a resumption of the current bear cycle. Recently, the pair breached 1.2597, the Jan 17 low, to confirm a range breakout, paving the way for a move towards 1.2500, the Dec 13 low. Initial resistance is at 1.2684, the Feb 13 high.