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Price Signal Summary - Bearish Extension In GBPUSD

OUTLOOK
  • In FX, EURUSD conditions remain bearish and the pair is trading at its recent lows. This week’s bull channel breakout reinforces the current bearish condition and opens 1.0668 next, the Jun 7 low. The channel is drawn from the Mar 15 low. Note that moving average studies remain in a bear mode set-up highlighting the market's current sentiment. Key short-term resistance has been defined at 1.0945, the Aug 30 high.
  • GBPUSD is trading lower, as the bear cycle extends. This week’s move through support at 1.2548, the Aug 25 low, confirmed a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. Note that moving average studies are in a bear mode position highlighting a downtrend. The focus is on 1.2433, the Jun 8 low. Initial firm resistance is at 1.2659, the 20-day EMA. First resistance is at 1.2548.
  • The USDJPY trend condition remains bullish and the pair is holding on to this week’s gains. Resistance at 147.37, the Aug 29 high and a bull trigger, has been cleared. This confirms a resumption of the uptrend and opens 148.40 next, the Nov 4 2022 high. On the downside, 144.45 represents the key short-term support, the Sep 1 low. Initial; support lies at 145.73, the 20-day EMA.

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