GBP/USD outlook: Cable holds firm bearish stance ahead of Powell's speech
|GBP/USD
Cable remains in red for the fourth straight day and probes below psychological 1.20 support, hitting new one-month low.
Strong support at 1.1951 (200DMA / Fibo 23.6% of 1.0348/1.2447) is under pressure and break here to generate fresh bearish signal for extension towards pivotal support at 1.1841 (Jan 6 low), loss of which would confirm a double-top 1.2446 and risk deeper pullback.
Bearish momentum is rising on daily chart and in addition to multiple bear crosses of MA’s (10/20/30/55) maintains pressure, though oversold stochastic may produce headwinds to bears.
Stronger dollar on Fed’s hawkish shift in rate view also contributes to pound’s negative near-term stance.
Focus turns to Fed chair Powell who will be speaking today, with fresh pressure on sterling expected on more hawkish than expected remarks from Fed chief.
Broken 1.20 level reverted to immediate resistance, with upticks to be capped by daily cloud top (1.2099) and daily Kijun-sen (1.2144) to keep fresh bears in play.
Res: 1.2000; 1.2077; 1.2099; 1.2144.
Sup: 1.1951; 1.1900; 1.1841; 1.1796.
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