GBP/USD outlook: Cable falls to new 2022 low after weak UK GDP data added to negative sentiment
|GBP/USD
Cable extends steep fall of past four weeks and probed below 1.22 handle to hit new 2022 low.
Weak UK GDP data, released today, added to negative sentiment, fueled by risk aversion that continues to inflate the US dollar.
Negative fundamentals dominate and so far counter signals from strongly oversold daily and weekly studies, however, some price adjustment should be anticipated in the coming sessions, in response to oversold conditions.
Upticks are expected to be limited and capped under 1.2400 zone (May 11 spike high / falling daily Tenkan-sen) to keep bears intact and offer better levels to re-enter strong bearish market.
Bears see no significant obstacles en-route to next targets at 1.2080/00 (Fibo 76.4% of 1.1409/1.4249 rally / psychological), with risk of deeper fall on violation of 1.20 pivot, remaining in play.
Res: 1.2250; 1.2300; 1.2375; 1.2400.
Sup: 1.2165; 1.2100; 1.2080; 1.2000.
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