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Early Upside

GBPUSD TECHS
  • RES 4: 1.1738 High Sep 13 and a key resistance
  • RES 3: 1.1664 3.0% 10-dma envelope
  • RES 2: 1.1590 High Sep 14
  • RES 1: 1.1578 High Oct 26 and the bull trigger
  • PRICE: 1.1569 @ 08:52 BST Oct 26
  • SUP 1: 1.1061/1058 Low Oct 21 / 13
  • SUP 2: 1.0924/22 Low Oct 12 / 50.0% of Sep 26 - Oct 5 bull cycle
  • SUP 3: 1.0787 61.8% retracement of Sep 26 - Oct 5 bull cycle
  • SUP 4: 1.0541/0350 Low Sep 28 / All Time Low

GBPUSD is rallying again early Wednesday, putting the pair at a new multi-week high of 1.1578. This looks like a clean break above the 1.1495 bull trigger and is a significant technical development. The 2.0% 10-dma envelope has been tested and topped intraday, improving the outlook further. This opens gains toward the 1.1590 level, which marks the Sep 14 high. The short-term outlook is firmer and remains bullish. The current cycle highlights scope for a stronger reversal. On the downside, key near-term support is unchanged at 1.0924, the Oct 12 low. A break of this level would instead reinstate a bearish theme.

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

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