GBPUSD Outlook: Consolidation may precede clear break below 1.30
|GBPUSD
Cable is holding within tight consolidation on Friday after steep three-day fall spiked to 1.2957 (the lowest since early Sep 2017).
Initial attempt below psychological 1.30 support failed to close below on Thursday, but sentiment remains weak, following a series of downbeat UK data released this week.
Bears may show stronger hesitation at 1.30 support, with the notion being supported by oversold slow stochastic, but upside action is expected to be limited and seen as positioning for fresh weakness.
The pair is on track for strong bearish weekly close (the second consecutive week in red) and probes below weekly cloud base (1.3026).
Strong bearish signal could be expected on close below weekly cloud and 1.30 handle, for extension towards 1.2905 (05 Sep 2017 low), with stronger acceleration lower, expected to attack next pivotal support at 1.2865 (Fibo 61.8% of 1.1930/1.4376, 2016/2018 uptrend).
Broken former low of 28 June and weekly 100SMA mark solid barriers at 1.3049/77, which should ideally cap and keep intact falling 10SMA (1.3162).
Res: 1.3036; 1.3049; 1.3077; 1.3090
Sup: 1.2994; 1.2957; 1.2929; 1.2905
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