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Corrective Bounce

GBPUSD TECHS
  • RES 4: 1.2680 High May 10 and the bull trigger
  • RES 3: 1.2547/2641 High May 16 / 11
  • RES 2: 1.2493 High May 18
  • RES 1: 1.2436/46 20-day EMA / High May 30
  • PRICE: 1.2407 @ 16:02 BST May 30
  • SUP 1: 1.2308 Low May 25
  • SUP 2: 1.2275 Low Apr 3
  • SUP 3: 1.2242 50.0% retracement of the Mar 8 - May 10 bull run
  • SUP 4: 1.2213 Low Mar 27

GBPUSD traded higher Tuesday, extending the bounce from last week’s 1.2308 low on May 25. Short-term gains are considered corrective, for now, and the trend direction remains down. Price has recently breached the 50-day EMA and 1.2345, the Apr 10 low. This opens 1.2242 next, a Fibonacci retracement. On the upside, initial firm resistance is at 1.2436, the 20-day EMA. A clear break of this average would signal a possible reversal.

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

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