GBP/USD outlook: Initial signals of reversal above thickening daily cloud developing on daily chart
|GBP/USD
Cable edged higher in European trading on Friday ahead of release of US inflation data, today’s key economic event, with better than expected UK Q1 GDP numbers adding to improving sentiment.
Technical picture shows conflicting signals from daily indicators (14-d momentum remains in the negative territory / MA’s are in mixed setup and thickening daily Ichimoku cloud continues to underpin near term action.
Several downside attempts have been contained recently by 55DMA, just above rising cloud top, which develops initial signals of basing, with current extended sideways mode, pointing to consolidation before bulls regain traction.
The notion is supported by formation on weekly inverted hammer, though verification of initial bullish signal will require lift and close above pivotal barriers at 1.2670 (10DMA) and 1.2702 (Jun 25 lower top), to shift near-term focus higher and expose targets at 1.2736/65.
Caution of break through daily cloud (currently spanned between 1.2582 and 1.2561) which would revive bears and risk deeper fall.
Res: 1.2670; 1.2702; 1.2736; 1.2765.
Sup: 1.2626; 1.2582; 1.2561; 1.2513.
Interested in GBP/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.