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Sell-on-Rallies Theme Dominates

GBPUSD TECHS
  • RES 4: 1.2506 1.382 proj of the Sep 26 - Oct 5 - Oct 12 price swing
  • RES 3: 1.2401/2448 High Feb 2 / High Jan 23 and the bull trigger
  • RES 2: 1.2265 High Feb 3
  • RES 1: 1.2269 / 99 High Feb 14 / 20-day EMA
  • PRICE: 1.2043 @ 15:36 GMT Feb 27
  • SUP 1: 1.1923/15 Low Feb 27/17
  • SUP 2: 1.1842 Low Jan 6 and a reversal trigger
  • SUP 3: 1.1859 3.0% 10-dma envelope
  • SUP 4: 1.1800 Round number support

GBPUSD printed a lower pullback low early Monday, extending the losses seen into the Friday close. Prices failed to retain upside momentum after the recent 1.2269 print and displayed similar price action off the 1.2147 print last week. Recent weakness reinforces a S/T bearish theme and signals scope for a continuation. A break of 1.1842 would highlight a potential trend reversal and a double top. Firm resistance is 1.2265, Feb 3 high. Key resistance is 1.2448, Jan 23 high.

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

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