Cable slumps after dovish Carney; UK credit rating cut threats

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable fell further after being hit by S&P's threat of another UK credit rating cut. Extension of bearish acceleration on Tuesday broke below key near-term support at 1.2635 (09 June low, reinforced by 100SMA) and posted fresh two-month low at 1.2610. Repeated upside rejections at daily cloud top and subsequent weakness, brought daily studies in full bearish setup which along with growing negative sentiment, turns focus towards next strong supports at 1.2556/48 (200SMA/daily cloud base). Close below 1.2635/25 pivots (09 June low/Fibo 61.8% of 1.2365/1.3047 bull-phase) is needed to confirm bearish continuation.

Res: 1.2645; 1.2666; 1.2700; 1.2757
Sup: 1.2600; 1.2556; 1.2548; 1.2526

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2808
2. R2 1.2795
3. R1 1.2785
PP 1.2772
1. S1 1.2762
2. S2 1.2749
3. S3 1.2739

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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