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Reversal Lower Highlights A Bearish Threat

GBPUSD TECHS
  • RES 4: 1.2996 High Jul 27 2023
  • RES 3: 1.2946 2.00 projection of the Feb 14 - 22 - Mar 1 price swing
  • RES 2: 1.2894 High Mar 8 and the bull trigger
  • RES 1: 1.2724/2803 20-day EMA / High Mar 21
  • PRICE: 1.2638 @ 06:10 GMT Mar 22
  • SUP 1: 1.2634 Intraday low
  • SUP 2: 1.2600 Low Mar 1
  • SUP 3: 1.2536 Low Feb 14
  • SUP 4: 1.2519 Low Feb 5 and the bear trigger

A sharp sell-off in GBPUSD yesterday has strengthened a short-term bearish threat and this has exposed support at 1.2600, the Mar 1 low. Price has breached the 50-day EMA. A break of 1.2600 would signal scope for a deeper retracement and potentially expose 1.2519, the Feb 5 low and a key support. Moving average studies continue to highlight an uptrend. A break of Thursday’s 1.2803 high would open 1.2894, the Mar 8 high and bull trigger.

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