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Bull Channel Breakout Reinforces A Bearish Theme

GBPUSD TECHS
  • RES 4: 1.3142 High Jul 14 and the bull trigger
  • RES 3: 1.3045 High Jul 19
  • RES 2: 1.2887/2996 High Jul 28 / 27 and a key resistance
  • RES 1: 1.2840 20-day EMA
  • PRICE: 1.2714 @ 16:23 BST Aug 03
  • SUP 1: 1.2621 Low Aug 3
  • SUP 2: 1.2591 Low Jun 29
  • SUP 3: 1.2480 1.50 projection of the Jul 14 - 24 - 27 price swing
  • SUP 4: 1.2439 1.618 projection of the Jul 14 - 24 - 27 price swing

GBPUSD maintains a weaker tone and this week’s price action has reinforced bearish conditions. Wednesday’s sell-off resulted in a break of the key support highlighted by the the 50-day EMA and the base of a bull channel, drawn from the Mar 8 low. This strengthens a bearish theme and signals scope for weakness towards 1.2591, the Jun 29 low. First resistance is at 1.2840, the 20-day EMA.

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