Free Trial

Bearish Engulfing Reversal Still In Play

CABLE TECHS
  • RES 4: 1.3280 High Sep 7
  • RES 3: 1.3174 61.8% retracement of the Sep 1 - 23 sell-off
  • RES 2: 1.3079 50.0% retracement of the Sep 1 - 23 sell-off
  • RES 1: 1.3007 High Sep 16 and Oct 6 plus key resistance
  • PRICE: 1.2952 @ 05:53 BST Oct 9
  • SUP 1: 1.2846 Low Oct 7
  • SUP 2: 1.2806 Low Sep 30 and key near-term support
  • SUP 3: 1.2745 Low Sep 28
  • SUP 4: 1.2676 Low Sep 23 and the bear trigger

GBPUSD has recovered off recent lows. Despite this, the focus is on Tuesday's price action that highlights a bearish reversal signal. In Japanese candle terms, activity on Oct 6 is an engulfing pattern and signals the end of the recent corrective bounce. A break of 1.2846, Oct 7 low would open 1.2806, Sep 30 low and potentially 1.2676, Sep 23 low. On the upside, key resistance remains 1.3007, a breach would be bullish and alter the picture.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.