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Bearish Focus

GBPUSD TECHS
  • RES 4: 1.3987 Former bull channel base
  • RES 3: 1.3953 50% Retracement Feb - Mar Downleg
  • RES 2: 1.3919 High Apr 6 and a key resistance
  • RES 1: 1.3840 High Apr 7
  • PRICE: 1.3823 @ 16:38 BST Apr 16
  • SUP 1: 1.3670/69 Low Mar 25 / Low Apr 12
  • SUP 2: 1.3663 Low Low Feb 5
  • SUP 3: 1.3641 38.2% retracement of the Sep 23 - Feb 24 bull cycle
  • SUP 4: 1.3567 Low Feb 4

Despite recent gains, the GBPUSD outlook remains bearish. Firm resistance is at 1.3919, Apr 6 high. Note, a former bull channel drawn off the Nov 2, 2020 low also highlights resistance at 1.3987. Clearance of this 1.3919/87 zone is required to strengthen a bullish argument. Attention is on key support at 1.3670, Mar 25 low. A clean break would resume the 1.5 month downtrend and open 1.3641, a Fibonacci retracement. Initial resistance is 1.3840.

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