Cable - daily cloud top caps for now; focus on Supreme Court ruling on A50

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable eases from fresh 5-week highs at 1.2540, where daily cloud top capped yesterday’s strong rally and today’s attempts to finally break above the cloud.
Easing on overbought conditions is under way, with initial supports at 1.2441/26 (broken 100SMA/ daily cloud base) being intact for now and guarding 1.2410 (Fibo 23.6% of 1.1986/1.2542 rally / 55SMA).
Daily Slow Stochastic is in overbought territory and may generate stronger bearish signal for deeper pullback.
The pair will be looking for the UK Supreme Court decision on A 50, due later today.
Overturn of High Court’s verdict from November could send pound significantly lower, while more likely scenario of Supreme Court decision would further support the pair.

Res: 1.2542; 1.2587; 1.2650; 1.2680
Sup: 1.2441; 1.2426; 1.2410; 1.2330

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2410
2. R2 1.2399
3. R1 1.2392
PP 1.2381
1. S1 1.2374
2. S2 1.2363
3. S3 1.2355

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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