GBP/USD Outlook: Extended bears pressure major supports
GBP/USD
Cable probed below 1.22 handle in European trading on Thursday, extending weakness below daily cloud and pressuring key barriers at 1.2174/64 (Fibo 38.2% of 1.1409/1.2647/7 Apr low). Stronger dollar after Fed's Powell dismissed negative rates weigh on pound, already pressured by record GDP contraction and signals that BoE would increase QE next month. Daily techs in full bearish setup add to negative outlook. Firm break below 1.2174/64 pivots would generate reversal signal as it will signal an end of range trading since early April and also confirm double-top (1.2647/42) where 200DMA repeatedly capped recovery. Break lower would open way towards targets at 1.2028 (50% of 1.1409/1.2647) and 1.20 (psychological). Former low (1.2247) and falling 5DMA (1.2287) mark solid barriers which are expected to cap upticks and keep bears intact.
Res: 1.2247; 1.2287; 1.2309; 1.2339
Sup: 1.2174; 1.2164; 1.2131; 1.2100
Interested in GBP/USD technicals? Check out the key levels
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.