Cable – Risk of deeper pullback seen on break below converging 10/20SMA’s
|Cable closed in red on Tuesday and generated another negative signal after Harami pattern was formed on Fri/Mon. The pair came under additional pressure after yesterday's terrorist attack in Manchester, keeping the downside vulnerable. Technical studies on lower timeframes are weak with indicators on daily chart pointing lower that may shift near-term bias. First triggers and strong supports lay at 1.2945/35 (converging 10/20SMA's), loss of which would generate stronger bearish signal for fresh extension of pullback from highs at 1.3045 zone, as descending thick weekly cloud continues to weigh. Further easing would expose next pivotal supports at 1.2843/30, break below which is needed to confirm reversal. Conversely, break and close above 1.3000 barrier would neutralize immediate bearish threats. With no releases of economic indicators from the UK today, turns focus towards US housing data and more significant FOMC minutes, which may give more clues whether the Fed remains on track for rate hike in June.
Res: 1.3000; 1.3033; 1.3046; 1.3087
Sup: 1.2945; 1.2935; 1.2888; 1.2843
Interested in GBP/USD 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.