A bull cycle in GBPUSD remains in play. The pair rallied sharply higher on Tuesday to confirm a resumption of the uptrend that started Oct 4. Resistance at 1.2428, the Nov 6 high, has been breached and note that price is also through 1.2459, 38.2% of the Jul 14 - Oct 4 bear leg. This opens 1.2589 next, the 50.0% retracement point. Firm short-term support is at 1.2187, the Nov 10 low. A short-term pullback is considered corrective.
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EURJPY is firmer but continues to trade inside its range. Resistance to watch is 158.65, the Sep 13 high. For bulls, a break of this level would highlight a range breakout and expose the key resistance and bull trigger at 159.76, the Aug 30 high. On the downside, key support lies at 154.46, the Oct 3 low. Clearance of this level would strengthen a bearish case and open 153.39, a Fibonacci retracement.
A bearish theme in Eurostoxx 50 futures remains in play and last week’s reversal from 4256.00, the Oct 12 high, signals the end of the recent corrective cycle. Note too that resistance at the 50-day EMA, at 4246.50, remains intact. A clear break of this average is required to signal scope for a stronger correction. The bear trigger lies at 4082.00, the Oct 4 low. Clearance of this level would confirm a resumption of the downtrend.