GBP/USD outlook: Break of pivotal supports sparks fresh acceleration lower

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable fell to the lowest in nearly five months on Friday, following fresh bearish acceleration through psychological 1.2500 support and Fibo level at 1.2465 (50% retracement of 1.2037/1.2893 uptrend.

Breach of a multi-month range floor (1.2518) weakens the structure and increases risk of deeper fall on completion of a double-top pattern on weekly chart.

Bearish daily studies (14-d momentum remains in negative territory / MA’s in bearish setup and formation of 5/200DMA death cross) contribute to negative outlook.

Weekly close below 1.2500 zone is minimum requirement to keep fresh bears in play and to confirm bearish signal for extension towards next target at 1.2364 (Fibo 61.8%).

Corrective upticks should be capped under broken Fibo 38.2% level (1.2566) to offer better selling opportunities.

Caution on firm break above 200DMA (1..2583).

Res: 1.2518; 1.2539; 1.2565; 1.2583.
Sup: 1.2400; 1.2364; 1.2288; 1.2239.

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

1. R3 1.2652
2. R2 1.2615
3. R1 1.2584
PP 1.2548
1. S1 1.2516
2. S2 1.248
3. S3 1.2448

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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