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Short-Term Weakness Appears To Be A Correction

GBPUSD TECHS
  • RES 4: 1.2881 76.4% retracement of the Jul 14 - Oct 4 bear leg
  • RES 3: 1.2855 2.0% 10-dma envelope
  • RES 2: 1.2800 High Aug 22
  • RES 1: 1.2733 High Nov 29 and the bull trigger
  • PRICE: 1.2610 @ 18:49 GMT Dec 4
  • SUP 1: 1.2591/2505 Low Nov 27 / 20-day EMA
  • SUP 2: 1.2416 50-day EMA
  • SUP 3: 1.2266 Low Nov 14
  • SUP 4: 1.2187 Low Nov 10 and key short-term support

The trend direction in GBPUSD remains up and the move lower Monday is considered corrective. Recent gains maintain the current positive price sequence of higher highs and higher lows and note that moving average studies are in a bull-mode position, highlighting an uptrend. The focus is on 1.2800, the Aug 22 high and 1.2855, a vol band resistance. On the downside, initial firm support to watch at 1.2505, the 20-day EMA.

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