Cable eases after Fibo barrier at 1.3109 repeatedly capped rallies
|Cable is pressuring initial support at 1.3047 (18 May former high) in early Monday’s trading, following repeated failure at 1.3113 (Friday’s high / near Fibo 38.2% retracement of 1.5016/1.1930 descend) which so far capped the rally.
Further easing on profit-taking after strong rally last week and overbought conditions on daily chart could be anticipated.
Extension below former highs at 1.3047/30 should ideally find support at psychological 1.3000 support (also Fibo 38.2% of 1.2811/1.3113) and 1.2962 (daily Tenkan-sen), before bulls resume.
Bullish technical studies and sentiment on overall weak US dollar keep the pair supported, with clear break above 1.3113 needed to confirm bullish continuation towards 1.3445 (Sep 2016 high).
UK inflation (due on Tuesday) and Retail Sales (due on Thursday) will be closely watched for fresh signals.
Stronger bearish signals could be expected on extension below 1.2930 (Friday’s low / Fibo 61.8% of last week’s 1.2811/1.3113 rally).
Res: 1.3113; 1.3164; 1.3200; 1.3248
Sup: 1.3047; 1.3030; 1.3000; 1.2962
Interested in GBPUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.