Cable - break below Diamond pattern signals bearish continuation

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable remains weak and so far showed limited impact of better-than-expected UK data. Yesterday’s close in red candle with long upper shadow, signaled renewed weakness that eventually broke below Diamond pattern, formed on daily chart. This gives strong signals of bearish continuation of larger descend from 1.3443 peak that was congested between 1.2913 and 1.3115 during past two weeks.
Strong bearish notion is supported by massive daily Ichimoku cloud that continues to produce strong pressure.
Final break below strong near-term support and base at 1.2913 is needed to confirm bearish resumption.
Initial resistance lies at 1.2987 (session high / broken Diamond support), followed by psychological 1.3000 barrier and daily Tenkan-sen line at 1.3115.
Only bounce above 1.3045 (Diamond resistance line) will sideline immediate downside threats for extended consolidation phase.

Res: 1.2987; 1.3015; 1.3044; 1.3055
Sup: 1.2935; 1.2913; 1.2864; 1.2795

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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