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Resumes Its Downtrend

GBPUSD TECHS
  • RES 4: 1.2974 Low Apr 13 and a recent breakout level
  • RES 3: 1.2877 High Apr 25
  • RES 2: 1.2742/72 20-day EMA / High Apr 26
  • RES 1: 1.2638 High May 4
  • PRICE: 1.2361 @ 06:15 BST May 6
  • SUP 1: 1.2325 Low May 5
  • SUP 2: 1.2252 Low Jun 29 2020
  • SUP 3: 1.2200 Round number support
  • SUP 4: 1.2162 Low May 22 2020

A bearish risk in GBPUSD remains present following Thursday’s sharp sell-off. The break of 1.2412, Apr 28 low, confirms a recent shallow correction and a bear flag breakout on the daily frequency. The move also confirms a resumption of the downtrend and signals scope for weakness towards 1.2252 next, the Jun 29 2020 low. Key short-term resistance has been defined at 1.2638, the May 4 high.

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