GBPUSD crashes on stronger dollar; cracks strong 1.2087 support
|GBPUSD
Sharp fall on Tuesday tokk out supports at 1.2169 and 1.2134 and briefly probed below 1.2100 handle and dented key near-term support at 1.2087 (11 Oct low). Cable accelerated lower sharply after repeated failures to clearly break above sideways-moving daily 10SMA (currently at 1.2223) which was seen as minimum requirement for signaling recovery after past three days descend found footstep at 1.2169.
The pair is now on track for strong bearish daily close, which will generate negative signal for further weakness.
Loss of the last solid support at 1.2087 will signal an end of near-term consolidative phase that was capped at 1.2330 and open way towards key support at 1.1197 (07 Oct spike low), loss of which would trigger bear leg towards levels last traded in 1985.
Hesitation at 1.2000 zone could be expected, as south-heading daily RSI is in oversold territory, but no reversal signal being generated so far.
Another strong bearish signal comes from monthly chart, as cable is on track for the strongest monthly bearish close after June’s post-Brexit vote sharp fall.
Res: 1.2140; 1.2169; 1.2200; 1.2238
Sup: 1.2087; 1.1997; 1.1870; 1.1790
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.