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Trend Remains Up

GBPUSD TECHS
  • RES 4: 1.3697 2.0% 10-dma envelope
  • RES 3: 1.3607 High Nov 9
  • RES 2: 1.3562/78 100-dma / 61.8% of the Oct - Dec sell-off
  • RES 1: 1.3550 High Dec 31 and a key resistance
  • PRICE: 1.3461 @ 06:29 GMT Jan 4
  • SUP 1: 1.33431 Low Jan 3
  • SUP 2: 1.3391 20-day EMA
  • SUP 3: 1.3343 Low Dec 23
  • SUP 4: 1.3240 Low Dec 22

GBPUSD traded higher last week but gains have so far stalled at 1.3550, the Dec 31 high. The pair remains above its 50-day EMA at 1.3427 - the recent breach of this average reinforced bullish conditions. A resumption of strength would clear the way for 1.3578, a Fibonacci retracement and 1.3607, the Nov 9 high. Note that 1.3562 the 100-dma also represents an important resistance. Firm support to watch is at 1.3391, the 20-day EMA.

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