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Bull Cycle Remains In Play - For Now

GBPUSD TECHS
  • RES 4: 1.2506 High Sep 14
  • RES 3: 1.2459 38.2% retracement of the Jul 13 - Oct 4 bear leg
  • RES 2: 1.2435 200-dma
  • RES 1: 1.2428 High Nov 6
  • PRICE: 1.2299 @ 16:22 GMT Nov 7
  • SUP 1: 1.2276 Low Nov 7
  • SUP 2: 1.2217/1.2070 20-day EMA / Low Oct 26
  • SUP 3: 1.2037/28 Low Oct 04 and bear trigger / Low Mar 16
  • SUP 4: 1.2011 Low Mar 15 and a key support

GBPUSD traded sharply higher last Friday and this resulted in a break of resistance at 1.2289, the Oct 24 high as well as key resistance at 1.2337, the Oct 11 high. The move higher strengthens the bullish case and signals scope for a stronger short-term retracement. This has opened the 200-dma at 1.2435 and 1.2459, a Fibonacci retracement. On the downside, support to watch lies at 1.2217, the 20-day EMA.

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