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Consolidating With Resistance Intact

GBPUSD TECHS
  • RES 4: 1.4174 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: 1.3908 @ 06:05 BST May 7
  • SUP 1: 1.3801 Low May 3
  • 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 is unchanged and still consolidating. The outlook is bearish though. The pair traded sharply lower Apr 30 breaching support at 1.3824, Apr 22 low. The move through 1.3824 and the recent failure to tackle resistance at 1.4009, Apr 20 high, highlights the risk of a pullback towards 1.3669, Apr 12 low. Clearance of this support level would strengthen a bearish case. Cable needs to clear resistance at 1.4009 to reinstate a bullish theme.

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