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Bearish Extension Accelerates

GBPUSD TECHS
  • RES 4: 1.3958 High Aug 4
  • RES 3: 1.3913 High Sep 14 and a key resistance
  • RES 2: 1.3723/79 20-day EMA / 50-day EMA
  • RES 1: 1.3555/3602 Intraday high / Low Aug 20
  • PRICE: 1.3440 @ 16:38 BST Sep 29
  • SUP 1: 1.3422 Low Sep 29
  • SUP 2: 1.3381 2.0% 10-dma envelope
  • SUP 3: 1.3354 Low Dec 23, 2020
  • SUP 4: 1.3277 61.8% retracement of the Sep '20 - Jan bull phase

GBPUSD remains under acute pressure given Tuesday's sharp sell-off that resulted in the break of a number of key supports. Firstly, the triangle base at 1.3637, drawn from the Jul 20 low has been breached, leading to the pair falling through 1.3462, 50.0% of the Sep '20 - Jan bull phase. This opens losses toward levels not seen since late December last year, with 1.3354 the next target.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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