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Trend Direction Remains Down

GBPUSD TECHS
  • RES 4: 1.2680 High May 10 and the bull trigger
  • RES 3: 1.2547/2641 High May 16 / 11
  • RES 2: 1.2493 High May 18
  • RES 1: 1.2434/46 20-day EMA / High May 30
  • PRICE: 1.2380 @ 16:10 BST May 31
  • SUP 1: 1.2308 Low May 25 and the bear trigger
  • SUP 2: 1.2275 Low Apr 3
  • SUP 3: 1.2242 50.0% retracement of the Mar 8 - May 10 bull run
  • SUP 4: 1.2213 Low Mar 27

Recent short-term gains in GBPUSD are considered corrective, for now, and the trend direction remains down. Price has recently breached the 50-day EMA and 1.2345, the Apr 10 low. A resumption of the downtrend would open 1.2242, a Fibonacci retracement. The bear trigger is 1.2308, the May 25 low. On the upside, firm resistance at 1.2434, the 20-day EMA, has been pierced. A clear break of this average would signal a possible reversal.

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

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