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Bullish Outlook

GBPUSD TECHS
  • RES 4: 1.2506 1.382 proj of the Sep 26 - Oct 5 - Oct 12 price swing
  • RES 3: 1.2446 High Dec 14 and the bull trigger
  • RES 2: 1.2242/2303 High Dec 19 / 76.4% of Dec 14 - Jan 6 bear leg
  • RES 1: 1.2210 High Jan 9
  • PRICE: 1.2160 @ 05:56 GMT Jan 12
  • SUP 1: 1.2085 20-day EMA
  • SUP 2: 1.1980/49 50-day EMA / 1.0% 10-dma envelope
  • SUP 3: 1.1842 Low Jan 6 and the bear trigger
  • SUP 4: 1.1779 Low Nov 21

GBPUSD is unchanged and is trading just below recent highs. The short-term outlook remains bullish. The recovery from 1.1842, the Jan 6 low and key support, highlighted an early reversal and Monday’s gains reinforces the signal that suggests the end of the recent bear cycle between Dec 14 - Jan 6. Note too that moving average studies are in a bull-mode position, highlighting a broader uptrend. Sights are on 1.2242 next, the Dec 19 high.

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