GBPUSD outlook: Consolidation likely to precede push towards 1.20 target

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable is consolidating under new multi-week high (1.1854) reinforced by cracked Fibo 76.4% of 1.2293/1.0348 (1.1834), where last week’s strong rally faced headwinds.

Bulls remain firmly in play despite overextended daily studies, boosted by weekly bullish engulfing pattern, pressuring 1.1834 Fibo pivot, break of which would open way for attack at psychological 1.20 barrier.

Converged 5/100DMA’s are about to form bull-cross (1.1655) and offer good support which should protect the downside and keep focus at the upside.

Only loss of pivotal 1.1550/1500 support zone (broken Fibo 61.8% / 10DMA / psychological) would harm bulls and signal deeper pullback.

Res: 1.1854; 1.1900; 1.2000; 1.2048.
Sup: 1.1743; 1.1655; 1.1645; 1.1550.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2124
2. R2 1.199
3. R1 1.1917
PP 1.1782
1. S1 1.171
2. S2 1.1575
3. S3 1.1503

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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