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Rallies Sold Into Thursday Close

GBPUSD TECHS
  • RES 4: 1.2452 50-day EMA
  • RES 3: 1.2441 200-dma
  • RES 2: 1.2351 High Sep 21
  • RES 1: 1.2337 High Oct 11
  • PRICE: 1.2213 @ 16:24 Oct 12
  • SUP 1: 1.2037 Low Oct 04 and the bear trigger
  • SUP 2: 1.2028 Low Mar 16
  • SUP 3: 1.2011 Low Mar 15 and a key support
  • SUP 4: 1.1964 3.00 proj of the Jul 14 - 24 - 27 price swing

The GBPUSD rally was sold into the Thursday close, largely reversing the post-payrolls market reaction posted across the first half of the week. The pullback puts spot back below the 20-day EMA, as overriding USD strength dominates. The longevity of the pullback will be key for informing the viability of the recent base at the Oct 4 low. A return higher opens gains toward the 200-dma above at 1.2441 and levels last seen in mid-September. For now, last week’s fresh cycle lows remain in view, which has reinforced bearish conditions over the medium-term. To return focus lower, 1.2028, the Mar 16 low will be the key downside target. For now, short-term gains are considered corrective.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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