GBP/USD outlook: Risk aversion pushes cable below 1.37 mark

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable resumes steep descend, which paused after 0.8% drop on Tuesday, and probed below 1.3700 mark on Thursday.

Bears cracked pivotal Fibo support at 1.3668 (76.4% of 1.3571/1.3983), on course to fully retrace the upleg from 1.3571 (July 20 low).

Rising bearish momentum and multiple MA bear crosses on daily chart support the action but bears may face headwinds on approach to the top of thick rising weekly cloud (1.3645) as daily stochastic is oversold.

Upticks should stay under broken 200DMA (1.3783) to keep bears in play and offer better levels to re-enter larger downtrend.

Res: 1.3700; 1.3728; 1.3783; 1.3810.
Sup: 1.3668; 1.3645; 1.3591; 1.3571.

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

1. R3 1.3839
2. R2 1.3813
3. R1 1.3784
PP 1.3757
1. S1 1.3728
2. S2 1.3702
3. S3 1.3673

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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