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Bullish Doji Candle Pattern

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: 1.2309/1.2428 High Nov 9 / 6
  • PRICE: 1.2263 @ 16:32 GMT Nov 13
  • SUP 1: 1.2185 Low Nov 3
  • SUP 2: 1.2070 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

A short-term bull cycle in GBPUSD remains in play and last week’s move lower appears to be a correction. A doji candle on Friday - if correct - represents a short-term reversal signal. A resumption of gains would refocus attention on resistance at 1.2428, the Nov 6 high and bull trigger. Clearance of this level would open the 200-dma at 1.2435 and 1.2459, a Fibonacci retracement. Support to watch lies at 1.2185, the Nov 3 low.

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