GBP/USD outlook: Bears are taking a breather after strong rejection at 1.20 zone on Friday

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable is trading around 1.21 handle, moving in a narrow range on expected lower volumes due to US Independence Day holiday.

Friday’s daily candle with long tail signals that bears are lacking strength for a final attack at 2022 low (1.1933) and also facing headwinds from psychological 1.20 support.

Fresh bullish momentum on daily chart supports the action, though moving averages are still in full bearish setup and weigh, suggesting that recovery needs more evidence.

Violation of falling 10DMA (1.2202) would give fresh strength to the action for extension towards upper pivots at 1.2296/1.2332 (daily Kijun-sen / recent range top).

Caution on failure to clear 10DMA which capped in past four days that would keep the downside at risk.

Res: 1.2139; 1.2202; 1.2225; 1.2254.
Sup: 1.2084; 1.2045; 1.2000; 1.1975.

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

1. R3 1.2398
2. R2 1.2289
3. R1 1.2194
PP 1.2085
1. S1 1.199
2. S2 1.1881
3. S3 1.1786

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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