GBP/USD outlook: Deeper pullback is likely to precede fresh attack at key Fibo barrier
|GBP/USD
Cable edged higher on Friday on fresh optimism over Brexit, pausing after Thursday’s 0.5% drop, but near-term risk remains for deeper correction before bulls regain control.
Wednesday’s massive advance stalled at key Fibo barrier at 1.3173 and profit-taking pushed the pair lower.
More positive tones coming from Brexit talks, keep the larger picture positive, with current pullback seen as positioning for fresh attempt through 1.3173 pivot, break of which would open way for extension towards 1.33 zone initially.
Extended dips should find ground at/above pivotal supports at 1.3017/00 (55DMA / psychological support) to keep bulls intact.
The pair is set for weekly gain and formation of bullish engulfing pattern on weekly chart, which would add to positive signals.
Caution on magnetic narrowing daily cloud which will twist next week and fading bullish momentum on daily chart, which keep the downside vulnerable, with loss of 1.3017/00 pivots to put bulls on hold and risk further easing.
Res: 1.3078; 1.3122; 1.3152; 1.3177
Sup: 1.3036; 1.3017; 1.3000; 1.2960
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.