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Bearish Outlook

GBPUSD TECHS
  • RES 4: 1.2974 Low Apr 13 and a recent breakout level
  • RES 3: 1.2877 High Apr 25
  • RES 2: 1.2772/2798 High Apr 26 / 20-day EMA
  • RES 1: 1.2614 High Apr 29
  • PRICE: 1.2580 @ 19:53 BST May 4
  • SUP 1: 1.2412 Low Apr 28 and the bear trigger
  • SUP 2: 1.2375 2.382 proj of the Mar 23 - Apr 13 - 14 price swing
  • SUP 3: 1.2252 Low Jun 29 2020
  • SUP 4: 1.2162 Low May 22 2020

GBPUSD recovered further above recent lows, but the overarching trend remains bearish for the pair. The outlook is negative following last week’s acceleration of the downtrend. Price has recently cleared 1.2974, Apr 13 low and 1.2676, last printed in September 2020. This has reinforced bearish conditions. The trend remains oversold, however, a reversal pattern is still required to signal a short-term base and possible reversal. The focus is 1.2375, a Fibonacci projection. 1.2614 marks initial resistance.

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

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