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Bullish Short-Term Outlook

GBPUSD TECHS
  • RES 4: 1.2754 76.4% retracement of the Mar 8 - Apr 22 bear leg
  • RES 3: 1.2709 High Apr 09
  • RES 2: 1.2667 61.8% retracement of the Mar 8 - Apr 22 bear leg
  • RES 1: 1.2634 High May 03
  • PRICE: 1.2533 @ 06:03 BST May 6
  • SUP 1: 1.2466 Low May 1 and key near-term support
  • SUP 2: 1.2423/2300 Low Apr 24 / 22 and the bear trigger
  • SUP 3: 1.2266 Low Nov 14 ‘23
  • SUP 4: 1.2239 76.4% retracement of the Oct 4 - Mar 8 bull leg

GBPUSD traded higher last Friday resulting in a break of the 50-day EMA, at 1.2571. A clear breach of the average would strengthen a short-term bullish set-up and signal scope for a stronger correction near-term. Scope is seen for a climb towards 1.2667, a Fibonacci retracement. Firm support has been defined at 1.2466, the May 1 low. Clearance of this level would reinstate a bearish threat.

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