GBP/USD outlook: Bears resume after a brief consolidation

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable fell further at the beginning of the week, after larger bears paused for consolidation on Friday.

Current bets show 60% chance of BoE rate cut at Thursday’s policy meeting, which continues to weigh on sterling.

Technical picture on daily chart weakened further after Monday’s acceleration broke below 1.2830 pivot (50% retracement of 1.2615/1.3044 / daily Kijun-sen) with daily close below here to confirm fresh negative signal.

Targets at 1.2779 (Fibo 61.8%) and 1.2741 (daily Ichimoku cloud top) are now in focus, with south-heading daily indicators showing further space for extension lower, though limited correction to be anticipated in coming sessions as stochastic is deeply oversold.

Upticks should be capped under 1.2850/70 barriers, to offer better selling opportunities.

Res: 1.2830; 1.2880; 1.2910; 1.2943.
Sup: 1.2800; 1.2779; 1.2741; 1.2716.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.2909
2. R2 1.2893
3. R1 1.2881
PP 1.2865
1. S1 1.2853
2. S2 1.2837
3. S3 1.2825

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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