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GBPUSD TECHS: Corrective Cycle Still In Play

GBPUSD TECHS
  • RES 4: 1.3362 1.618 proj of the Jun 27 - Jul 17 - Aug 8 price swing
  • RES 3: 1.3328 76.4% retrace of the Jun 2021 - Sep 2022 bear leg
  • RES 2: 1.3238/3266 High Sep 06 / High Aug 27 and the bull trigger
  • RES 1: 1.3143 High Sep 9
  • PRICE: 1.3081 @ 16:07 BST Sep 12
  • SUP 1: 1.3002 Low Sep 11
  • SUP 2: 1.2964 50-day EMA
  • SUP 3: 1.2895 61.8% retracement of the Aug 8 - 27 bull leg
  • SUP 4:  1.2852 Low Aug 16   

GBPUSD has traded lower this week, extending the bear cycle that started Aug 27. The move down is considered corrective and this is allowing a recent overbought condition to unwind. Support at the 20-day EMA, at 1.3072, has been breached. The break signals scope for a deeper retracement, potentially towards the 50-day EMA, at 1.2964. For bulls, a reversal higher would refocus attention on key short-term resistance at 1.3266, Aug 27 high.

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