GBP/USD outlook: Biased lower while below thickening daily cloud
|GBP/USD
Cable remains in red for the third straight day with fresh weakness on Tuesday, pointing to negative signals developing on daily chart.
Friday’s false break above daily cloud, left Doji candle with longer upper shadow and subsequent drop returned below cloud base, adding to negative signals.
Fresh bears need repeated close below the cloud base as minimum requirement, with thickening cloud providing pressure.
Violation of daily Tenkan-sen (1.3360) to confirm and expose last week’s spike low at 1.3248.
Negative momentum studies on daily chart contribute to scenario.
Cloud base (1.3406) marks solid resistance, although return and close within the cloud would sideline downside prospects.
Dily Kijun-sen reinforces cloud top (1.3487) which marks upper trigger, break of which would bring bulls in play.
Res: 1.3406; 1.3471; 1.3487; 1.3527.
Sup: 1.3360; 1.3323; 1.3311; 1.3261.
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.