GBP/USD outlook: Recovery likely to be limited but formation of weekly hammer warns
|GBP/USD
Cable gained traction in early Thursday and edges above 1.33 mark, after spike to new 2021 low (1.3194) was short-lived.
Larger bears faced strong headwinds at 1.3275/50 zone Fibo 61.8% of 1.2675/1.4249 upleg/weekly cloud base), with hammer forming on a weekly chart that could be an initial positive signal.
On the other side, overall picture on daily chart is bearish, although north-heading RSI and stochastic suggest there might be some room for bounce.
Recovery faces initial requirements on break above falling 10/20DMA’s 1.3340/1.3401) to ease bearish pressure, but upticks under 1.3513 (Nov 18 lower top) would provide better levels to re-enter bearish market, for renewed attack at weekly cloud base and attempt towards 1.3164/1.3154 (Fibo 38.2% of 1.1409/1.4249 / 200WMA).
Only sustained break above 1.3500 zone would provide relief and allow for stronger correction.
Res: 1.3340; 1.3370; 1.3401; 1.3438.
Sup: 1.3276; 1.3250; 1.3194; 1.3164.
Interested in GBP/USD technicals? Check out the key levels
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