Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable remains in red for the second consecutive day and extends pullback from new one-year high (1.3044).
Weaker than expected UK retail sales increase pressure on sterling and add to bets for BoE rate cut in August (currently at 44%).
Fresh bears broke below the floor of recent consolidation (around Fibo 23.6% of 1.2615/1.3044 upleg), generating initial bearish signal, with extension below cracked rising 10DMA (1.2914) to validate the signal and close below 1.2879 (Fibo 38.2%) to generate initial reversal signal.
Also, formation of bull-trap above 1.30 barrier on weekly chart, may add to downside risk.
On the other hand, daily studies are still predominantly bullish (MA’s in bullish setup / strong positive momentum), suggesting that current pullback could be seen as correction of larger uptrend, if dips find firm ground above 1.2830 zone.
Res: 1.2942; 1.3000; 1.3044; 1.3100.
Sup: 1.2879; 1.2860; 1.2828; 1.2777.
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The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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