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    GBP/USD: finding support from monthly pivot

       
    Cable has found support from the monthly pivot at 1.5604, where it is currently consolidating.

    In the absence of any reversal signs the current mini-down-trend will probably extend, however, given the monthly pivot is now at the level of the current exchange rate, I would ideally first want to see a move clearly below that, including a 20-point margin, so below 1.5584, before confirming more downside.

    Such a break lower would probably be expected to reach the next support level at around 1.5505. where the 50-day MA is situated, as well as support from a trend-line.

    On higher time-frames the move down from the June 18 high looks like an a-b-c correction of the mid-term up-trend.

    If so it has probably finished extending leg C and there is a possibility it could now start to resume its up-trend again, especially as a result of support from the monthly pivot limiting downside potential.

    The Non-Farm Payrolls release might provide the impetus for the next directional move for the pair.
    GBPUSD02

       
    Cable has found support from the monthly pivot at 1.5604, where it is currently consolidating.

    In the absence of any reversal signs the current mini-down-trend will probably extend, however, given the monthly pivot is now at the level of the current exchange rate, I would ideally first want to see a move clearly below that, including a 20-point margin, so below 1.5584, before confirming more downside.

    Such a break lower would probably be expected to reach the next support level at around 1.5505. where the 50-day MA is situated, as well as support from a trend-line.

    On higher time-frames the move down from the June 18 high looks like an a-b-c correction of the mid-term up-trend.

    If so it has probably finished extending leg C and there is a possibility it could now start to resume its up-trend again, especially as a result of support from the monthly pivot limiting downside potential.

    The Non-Farm Payrolls release might provide the impetus for the next directional move for the pair.
    GBPUSD02


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