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Clears First Support

GBPUSD TECHS
  • RES 4: 1.4186 2.0% 10-dma envelope
  • RES 3: 1.4103 76.4% retracement of the Feb 24 - Apr 12 downleg
  • RES 2: 1.4009/17 High Apr 20 / High Mar 4
  • RES 1: 1.3977 High Apr 29
  • PRICE: 1.3818 @ 06:04 BST May 3
  • SUP 1: 1.3803 Low Apr 30
  • SUP 2: 1.3717 Low Apr 16
  • SUP 3: 1.3670/69 Low Mar 25 / Low Apr 12 and key support
  • SUP 4: 1.3567 Low Apr 2

GBPUSD traded sharply lower Friday and in the process breached support at 1.3824, Apr 22 low. The move lower and the failure to tackle resistance at 1.4009, Apr 20 high, highlights a bearish threat and the risk of a pullback towards the key support at 1.3669, Apr 12 low. A break of this level would strengthen a bearish case. Cable needs to clear resistance at 1.4009 to offset the developing bearish price structure.

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