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Challenging 50-Day EMA

GBPUSD TECHS
  • RES 4: 1.4074 Low Jun 10
  • RES 3: 1.4001 High Jun 23 and key resistance
  • RES 2: 1.3890/3910 High Jul 27 / High Jul 12
  • RES 1: 1.3884 50-day EMA
  • PRICE: 1.3878 @ 16:20 BST Jul 27
  • SUP 1: 1.3691/3572 Low Jul 22 / Low Jul 20 and the bear trigger
  • SUP 2: 1.3520/3487 Low Jan 18 / 2.0%10-dma envelope
  • SUP 3: 1.3452 Low Jan 11
  • SUP 4: 1.3430 Low Dec 28, 2020

GBPUSD recovered into the Tuesday close, with prices very briefly showing above the 50-day EMA, which becomes key for the near-term outlook. Gains are considered corrective however with a bearish trend structure remaining intact. An extension of the correction would need a close above 1.3884, before challenging key short-term resistance at 1.3910, the Jul 12 high. A turn lower would signal the end of the bounce and open 1.3572, key support and the Jul 20 low.

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