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Pull Lower Prompts Reassessment of S/T Outlook

  • RES 4: 1.3391 1.236 proj of the Mar 8 - May 10 - May 25 price swing
  • RES 3: 1.3328 76.4% retracement of the Jun ‘21 - Sep ‘22 downleg
  • RES 2: 1.3258 1.236 proj of the May 25 - Jun 16 - Jun 29 price swing
  • RES 1: 1.3174 Bull channel top drawn from the Mar 8 low
  • PRICE: 1.2916 @ 08:11 BST Jul 20
  • SUP 1: 1.2870 Low Jul 20
  • SUP 2: 1.2868 20-day EMA
  • SUP 3: 1.2848 High Jun 16 and a recent breakout level
  • SUP 4: 1.2674 Low Jul 6

GBPUSD traded materially weaker into the Wednesday close, marking four consecutive sessions of losses and a partial retracement of the late June rally. Markets are on watch for a potential reversal pattern in the pair - which would gather strength on a break below 1.2866 - the 50% retracement of the late June upleg. Support at 1.2932, the 38.2% Fib level, broke. More broadly, the medium-term uptrend remains intact, with moving average studies in bull-mode position. The focus is on 1.3174, the top of a bull channel drawn from the Mar 8 low. Initial firm support lies at 1.2868, the 20-day EMA.

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