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Corrective Bounce

GBPUSD TECHS
  • RES 4: 1.1916 50-day EMA
  • RES 3: 1.1783 High Aug 29
  • RES 2: 1.1708 High Sep 12
  • RES 1: 1.1705 20-day EMA
  • PRICE: 1.1696 @ 15:35 BST Sep 12
  • SUP 1: 1.1412/06 Low Mar 20 2020 and major support / Low Sep 7
  • SUP 2: 1.1324 1.50 proj of the Jun 16 - Jul 14 - Aug 1 price swing
  • SUP 3: 1.1300 Round number support
  • SUP 4: 1.1248 1.618 proj of the Jun 16 - Jul 14 - Aug 1 price swing

The trend needle in GBPUSD still points south despite the most recent gains, which appear to be a correction. A bearish sequence of lower lows and lower highs highlight a downtrend. The trend is oversold and short-term gains are allowing this condition to unwind. Key support at 1.1412, Mar 20 2020 low, has been pierced. This is a major level and a clear break would strengthen bearish conditions. Firm resistance remains at 1.1705, the 20-day EMA.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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