GBP/USD outlook: Fresh recovery needs more evidence to confirm reversal
|GBP/USD
Cable extends gains into the second straight day, following Wednesday’s 0.6% rebound after being firmly in red for four consecutive days.
Bullish signal from Wednesday’s bullish engulfing was boosted by return and close above 200DMA, with today’s bullish close required to confirm reversal signal.
Bullseye initial targets at 1.3780 (10DMA/Fibo 61.8% of 1.3910/1.3571) and 1.3800 (20DMA), break of which would accelerate recovery.
Caution on rising bearish momentum which is diverging from price action and warning of possible recovery stall.
Broken 200DMA marks pivotal support (1.3700) and close back below the indicator would revive bears.
Res: 1.3758; 1.3780; 1.3800; 1.3830.
Sup: 1.3700; 1.3690; 1.3651; 1.3591.
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