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Bearish Theme

GBPUSD TECHS
  • RES 4: 1.2974 Low Apr 13 and a recent breakout level
  • RES 3: 1.2877 High Apr 25
  • RES 2: 1.2705/72 20-day EMA / High Apr 26
  • RES 1: 1.2380/2638 High May 6 / High May 4
  • PRICE: 1.2275 @ 06:23 BST May 9
  • SUP 1: 1.2252 Low Jun 29 2020
  • SUP 2: 1.2200 Round number support
  • SUP 3: 1.2162 Low May 22 2020
  • SUP 4: 1.2081 76.4% retracement of the Mar ‘20 - Jun ‘21 uptrend

GBPUSD is trading at its recent lows. A bearish risk remains present following Thursday’s sharp sell-off. Last week's breach of 1.2412, Apr 28 low, confirms a recent shallow correction and a bear flag breakout on the daily frequency. The move also confirms a resumption of the downtrend and signals scope for weakness towards 1.2252 next, the Jun 29 2020 low. Key short-term resistance has been defined at 1.2638, the May 4 high.

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