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Range Breakout

GBPUSD TECHS
  • RES 4: 1.2996 High Jul 27
  • RES 3: 1.2881 76.4% retracement of the Jul 14 - Oct 4 bear leg
  • RES 2: 1.2827 High Dec 28 and the bull trigger
  • RES 1: 1.2697/2775 20-day EMA / High Jan 24
  • PRICE: 1.2527 @ 16:55 GMT Feb 5
  • SUP 1: 1.2525 38.2% retracement of the Oct 4 - Dec 28 bull phase
  • SUP 2: 1.2519 Intraday low
  • SUP 3: 1.2500 Low Dec 13
  • SUP 4: 1.2432 50.0% retracement of the Oct 4 - Dec 28 bull phase

GBPUSD traded sharply lower Friday and extended the pullback through Monday trade. The pair has breached support at 1.2597, the Jan 17 low and the base of a range that has been in place since mid-January. A clear range breakout would strengthen a bearish condition and pave the way for weakness towards 1.2500, the Dec 13 low. Initial resistance is at 1.2697, the 20-day EMA. Key resistance is unchanged at 1.2827, the Dec 28 high.

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