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Pullback Considered Corrective

GBPUSD TECHS
  • RES 4: 1.2506 High Sep 14
  • RES 3: 1.2459 38.2% retracement of the Jul 13 - Oct 4 bear leg
  • RES 2: 1.2435 200-dma
  • RES 1: 1.2309/1.2428 High Nov 9 / 6
  • PRICE: 1.2226 @ 16:24 GMT Nov 10
  • SUP 1: 1.2187/80 Low Nov 10/3
  • SUP 2: 1.2070 Low Oct 26
  • SUP 3: 1.2037/28 Low Oct 04 and bear trigger / Low Mar 16
  • SUP 4: 1.2011 Low Mar 15 and a key support

Despite this week’s move lower, a short-term bull cycle in GBPUSD remains in play. The rally on Nov 3 reinforced a bullish theme - a candlestick pattern known as a standard line was confirmed at the close. This is a bullish continuation signal. The move higher suggests scope for a climb towards the 200-dma at 1.2435 and 1.2459, a Fibonacci retracement. The next support to watch lies at 1.2185, the Nov 3 low.

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