GBP/USD outlook: Cable bears face headwinds from daily cloud top
|GBP/USD
Cable remains in a step fall from last Wednesday’s 2 ½ month peak (1.3725) which has so far retraced over 61.8% of recent 1.3333/1.3725 rally and cracked next significant support at 1.3465 (daily cloud top).
Pound was initially hit by stronger dollar after Fed disappointed expectations for keeping very dovish stance, with signals from BoE Governor for possible further rate reductions, boosting bears on Thursday, while Friday’s unexpectedly high rise in UK borrowing sparked fresh acceleration lower.
Technical studies weakened on daily chart, with the pair being on track for weekly close in red (potential formation of bearish engulfing and long upper shadow on weekly candle add to negative signals).
On the other hand, daily cloud top offers solid support, which may hold bears for some time, with limited upticks to be capped under 1.3530 (daily Kijun-sen / broken Fibo 50%) to offer better selling levels and keep bears in play.
Res: 1.3500; 1.3530; 1.3559; 1.3575.
Sup: 1.3465; 1.3426; 1.3397; 1.3333.
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.