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Unwinding An Overbought Condition

  • RES 4: 1.3000 Round number resistance
  • RES 3: 1.2977 0.764 proj of the Mar 8 - May 10 - May 25 price swing
  • RES 2: 1.2877 High Apr 25 2022
  • RES 1: 1.2849 0.618 proj of the Mar 8 - May 10 - May 25 price swing
  • PRICE: 1.2707@ 05:49 BST Jun 23
  • SUP 1: 1.2680 High May 10
  • SUP 2: 1.2624/2515 20- and 50-day EMA values
  • SUP 3: 1.2433 Low Jun 8
  • SUP 4: 1.2369 Low Jun 5 and a key support

GBPUSD bulls remain in the driver’s seat and this week’s pullback appears to be a correction. The move lower is allowing a recent overbought condition to unwind. Support to watch lies at 1.2624, the 20-day EMA. The trend outlook remains bullish. The recent break of 1.2680, the May 10 high and a bull trigger, strengthens bullish conditions and opens 1.2849 next, a Fibonacci projection.

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