Cable slips after Manchester attack; risk of deeper pullback seen on break below 10/20SMA pivots

Slobodan Drvenica Windsor Brokers

GBPUSD

Sterling moved lower in early Tuesday's trading after deadly terrorist attack in Manchester and slipped below Monday's low at 1.2965 after hitting high at 1.3003 in Asia. Failure to close above 1.3000 on Monday and confirm break weighs, as the price action remains capped by falling thick weekly cloud. In addition, bearish divergence on daily MACD/slow stochastic warns of possible further easing. Overall bullish sentiment has been soured by Manchester blast that may add on risk of deeper pullback. Converging 10/20 SMA's at 1.2939/26 mark pivotal support, loss of which would generate bearish signal for further easing that may risk extension through pivots at 1.2920/1.2890, towards key near-term supports at 1.2843/30.

Res: 1.3000; 1.3022; 1.3046; 1.3100
Sup: 1.2944; 1.2920; 1.2889; 1.2843

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.3058
2. R2 1.3042
3. R1 1.3025
PP 1.3009
1. S1 1.2992
2. S2 1.2976
3. S3 1.2959

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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