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Bounces Well Off Tuesday Low

CABLE TECHS
  • RES 4: 1.3292 76.4% retracement of the Sep 1 - 23 sell-off
  • RES 3: 1.3256 2.0% 10-dma envelope
  • RES 2: 1.3257 Former trendline support drawn off the Mar 20 low
  • RES 1: 1.3177 High Oct 21
  • PRICE: 1.3070 @ 16:20 GMT Oct 27
  • SUP 1: 1.2983 20-day EMA
  • SUP 2: 1.2940 Low Oct 21
  • SUP 3: 1.2863 Low Oct 14 and key near-term support
  • SUP 4: 1.2806 Low Sep 30
Having partially retraced the Oct 21 rally, GBP/USD bounced well Tuesday, inching above the Monday high ahead of the close. This confirms that the move lower was likely a correction, keeping the short-term bullish structure intact. The Oct 21 climb reinforced a bullish theme, confirming a resumption of the upleg that started Sep 23. Attention is on 1.3257, the former trendline support drawn off the Mar 20 low. The trendline was breached on Sep 9. Firm support is at 1.2940, Oct 21 low. The reversal trigger lies at 1.2863, Oct 14 low.

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