GBPUSD has stalled at Thursday’s high and is down sharply as the USD rallies. The move lower highlights the fact that a bear cycle remains in play. If correct, this leaves support at 1.2798 exposed, the Jul 24 low. A break would signal scope for an extension lower towards the 50-day EMA at 1.2734. The base of the bull channel, drawn from the Mar 8 low and a key support, crosses at 1.2702. First resistance is at 1.2996, today’s high.
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The primary uptrend in GBPUSD remains intact. The recent move lower appears to be a correction and this is allowing an overbought trend condition to unwind. Support to watch lies at 1.2641, the 20-day EMA. The recent break of 1.2680, the May 10 high and a bull trigger, strengthens a bullish condition and sights are on 1.2849 next, a Fibonacci projection. A break would confirm a resumption of the uptrend.