GBP/USD outlook: Risk-off mode minimizes positive impact from freedom day
|GBP/USD
Cable remains offered on Tuesday hit new 4 ½ months low in extension of Monday’s 0.73% fall, driven by risk aversion on growing concerns on the global and local spread of Covid-19 Delta variant.
Investors continue to sell the pound, showing a very cautious reaction on freedom day – removal of most English coronavirus restrictions.
Monday’s close below 200DMA (1.36940 and extension below Apr-May higher base at 1.3670 and Fibo 38.2% of 1.2675/1.4249 at 1.3647, were strong bearish signals which require confirmation on an eventual close below these levels to signal reversal and confirm a double-top (1.4238/49, Feb/May tops).
Oversold daily techs suggest bears may pause after a three-day 1.3% drop and position for a fresh push lower.
Broken 200DMA should ideally cap upticks and keep bears intact.
Res: 1.3694; 1.3731; 1.3777; 1.3796.
Sup: 1.3647; 1.3628; 1.3565; 1.3519.
Interested in GBP/USD technicals? Check out the key levels
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