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Still Appears Top Heavy

  • RES 4: 1.3312 1.00 proj of Mar 20 - Apr 14 rally from May 18 low
  • RES 3: 1.3284 High Dec 31, 2019
  • RES 2: 1.3278 High 2020 (Jan 1)
  • RES 1: 1.3267 Aug 19 high and the bull trigger
  • PRICE: 1.3126 @ 16:25 BST Aug 25
  • SUP 1: 1.3037 20-day EMA
  • SUP 2: 1.3005 Low Aug 12 and the bear trigger
  • SUP 3: 1.2982 Low Aug 4 and a key support
  • SUP 4: 1.2945 Low Jul 30

GBPUSD still appears vulnerable despite trading higher into the Tuesday close. The Aug 19 move lower is a potentially important bearish signal that if correct, highlights the beginning of a correction. The pattern on this day is a bearish engulfing candle and is reinforced by a bearish divergence set-up between price and momentum. Key resistance remains 1.3267, last week's high. A break would resume the uptrend. Watch key support at 1.3005/2982.

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