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Corrective Pullback

CABLE TECHS
  • RES 4: 1.3292 76.4% retracement of the Sep 1 - 23 sell-off
  • RES 3: 1.3260 2.0% 10-dma envelope
  • RES 2: 1.3245 Former trendline support drawn off the Mar 20 low
  • RES 1: 1.3177 High Oct 21
  • PRICE: 1.3015 @ 16:42 GMT Oct 26
  • SUP 1: 1.2979 20-day EMA
  • SUP 2: 1.2940 Low Oct 21
  • SUP 3: 1.2863 Low Oct 14 and key near-term support
  • SUP 4: 1.2806 Low Sep 30

GBPUSD continues to retrace the Oct 21 rally. The move lower is likely a correction though with the S/T bullish structure still intact. The Oct 21 climb reinforced the near-term bullish theme, confirming a resumption of the upleg that started on Sep 23. Attention is on 1.3245, the former trendline support drawn off the Mar 20 low. The trendline was breached on Sep 9. Firm support is at 1.2940, Oct 21 low. The reversal trigger lies at 1.2863, Oct 14 low.

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

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