GBP/USD outlook: Bears accelerate on dovish comments from BoE's Governor Bailey

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable continues to travel south for the sixth straight day and hit 11-week low on Thursday after dovish tone from BoE Governor Bailey’s speech accelerated bears.

Fresh weakness broke through pivotal support at 1.3786 (June 21 low) completing failure swing pattern on daily chart and signaling continuation of larger downtrend from 1.4249 (2021 high of June 1).

Daily close below 1.3786 is needed to confirm scenario and expose targets at 1.3670 (Mar-Apr higher base) and 1.3635 (200DMA).

Falling daily Tenkan-sen (1.3887) should cap upticks and keep bears intact.

Res: 1.3806; 1.3834; 1.3887; 1.3939.
Sup: 1.3773; 1.3715; 1.3670; 1.3635.

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

1. R3 1.3945
2. R2 1.3909
3. R1 1.387
PP 1.3834
1. S1 1.3795
2. S2 1.376
3. S3 1.3721

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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