Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable traded in a choppy mode with limited downside after BOE rate cut and regained traction on much higher than expected US jobless claims.
The pair returned above 1.2800 mark after hitting the lowest in almost one month (1.2750), with subsequent bounce signaling formation of a bear-trap on daily chart (below Fibo support at 1.2779, reinforced by 55DMA).
This may generate initial signal of formation of reversal pattern, although with more work at the upside needed to validate signal (close above 20DMA at 1.2888 seen as minimum requirement).
Until then, the downside will remain vulnerable, as negative momentum continues to strengthen on daily chart).
Look for firmer direction signals on break of either pivot (1.2779 or 1.2888).
US Manufacturing PMI data (today) and Labor report (Friday) expected to provide fresh signals.
Res: 1.2830; 1.2873; 1.2888; 1.2943.
Sup: 1.2779; 1.2750; 1.2706; 1.2683.
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Interested in GBP/USD technicals? Check out the key levels
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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