GBP/USD outlook: Close within daily cloud to signal further weakness
|GBP/USD
Cable extends weakness into the second consecutive day, pressured by higher dollar on strong US NFP beat, which partially offset negative impact on expectations that the Fed would stay on hold in \June policy meeting.
Fresh bearish extension penetrated thick daily cloud (top of the cloud lays at 1.2431, reinforced by daily Tenkan-sen) and hit one-week low (1.2368) but need close within the cloud to confirm negative bias and keep near-term focus at the downside.
Violation of pivotal supports at 1.2344/07 (Fibo 38.2% of 1.1802/1.2679 / May 25 trough) to generate bearish signal on completion of failure swing pattern on daily chart and open way for continuation of larger downtrend from 1.2679 (2023 high).
Caution on bounce and close above daily cloud which would dent bears and ease downside pressure, however, return above daily Kijun-sen (1.2493) would revive bulls.
Res: 1.2431; 1.2472; 1.2493; 1.2544
Sup: 1.2368; 1.2344; 1.2307; 1.2274
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