GBP/USD outlook: Cable fell to seven-week low on negative rates/trade talks concerns; psychological 1.20 support comes in focus
|GBP/USD
Cable is consolidating above new seven-week low (1.2074) posted overnight, extending weakness after last week's nearly 2.5% fall. Friday's long bearish candle (the pair was down 1.2% for the day) weighs, as weekly close above pivotal supports at 1.2174/64 (Fibo 38.2% of 1.1409/1.2647 / five-week range low) generated bearish signal on emerge from extended sideways mode and confirmation of a double-top. Comments from BoE's official that the central bank for more options such as negative interest rates and disharmony of UK/EU trade talks, further pressure pound. Negative daily studies add to weak structure as bears focus targets at 1.2028 (50% of 1.1409/1.2647) and 1.20 (psychological support), loss of which would spark stronger bearish acceleration. The upside should be ideally capped by broken pivots at 1.2164/74 (reinforced by falling 5DMA), with repeated daily close below these levels needed to confirm bearish stance. Only break and close above falling 10DMA (1.2281) would sideline bears.
Res: 1.2164; 1.2174; 1.2200; 1.2281
Sup: 1.2074; 1.2028; 1.2000; 1.1882
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