Friday’s price action has affirmed the underlying bullish trend condition and short-term pullbacks are considered corrective. The recent breach of 1.2634, the May 3 high, confirmed a resumption of the current bull cycle and this opened 1.2754, 76.4% of the Mar 8 - Apr 22 bear leg. 1.2754 was pierced Wednesday, a clear break would expose 1.2803, the Mar 21 high. Initial firm support to watch lies at 1.2596, the 50-day EMA.
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The trend condition in GBPUSD remains bearish and short-term gains are considered corrective. A recovery is allowing an oversold trend condition to unwind. Moving average studies are in a bear-mode set-up and the recent break lower, maintains the downward price sequence of lower lows and lower highs. Sights are on 1.2266, the Nov 14 2023 low. Initial firm resistance is seen at 1.2517, the 20-day EMA.
Israeli media reporting that the Israeli War Cabinet will meet tomorrow to discuss a new strategy for securing the release of hostages and an upcoming IDF operation in the Gazan city of Rafah.
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