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Late Rally Does Little to Change Outlook

GBPUSD TECHS
  • RES 4: 1.2599 High Jun 7
  • RES 3: 1.2506 1.382 proj of the Sep 26 - Oct 5 - Oct 12 price swing
  • RES 2: 1.2242/2446 High Dec 19 / 14 and the bull trigger
  • RES 1: 1.2148 High Dec 22
  • PRICE: 1.2043 @ 16:03 GMT Jan 6
  • SUP 1: 1.1893 1.0% 10-dma envelope
  • SUP 2: 1.1874 Low Jan 6
  • SUP 3: 1.1779 Low Nov 21
  • SUP 4: 1.1645 38.2% retracement of the Sep - Dec rally

GBPUSD traded lower still Friday, with the impulsive sell-off extending below support at the Nov 30 low at 1.1901. A small rally into the Friday close has done little to change the overarching picture, with further weakness off the December high looking likely. Next downside levels cross at the 1.1893 envelope support and the Nov21 low at 1.1779.

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