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Break Lower Exposes 1.3000

GBPUSD TECHS
  • RES 4: 1.3492 76.4% retracement of the Feb 10 - Mar 15 downleg
  • RES 3: 1.3439 High Feb 25
  • RES 2: 1.3322 50-day EMA
  • RES 1: 1.3225/98 High Mar 25 and 23
  • PRICE: 1.3137 @ 16:50 GMT Mar 29
  • SUP 1: 1.3051/3000 Low Mar 29 / Low Mar 15 and the bear trigger
  • SUP 2: 1.2954 1.764 proj of the Jan 13 - 27 - Feb 10 price swing
  • SUP 3: 1.2933 Low Nov 5 2020
  • SUP 4: 1.2855 Low Nov 2 2020 and a key support

GBPUSD traded sharply lower Monday, and edged lower still ahead of the Tuesday close. This extends the pullback from 1.3298, Mar 23 high. The pair has recently failed to hold above the 20-day EMA and the 1.0% 10-dma envelope (at 1.3257) - both were breached last week. The pullback also means a key resistance at 1.3322, the 50-day EMA, remains intact. Prices have breached 1.3120, the Mar 22 low and this opens 1.3000, Mar 15 low. Clearance of the 50-day EMA is required to signal a reversal.

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

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