GBP/USD Outlook: Bears pressure key Fibo support at 1.2773

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable holds firmly in red and extends weakness close to key support at 1.2773 (Fibo 61.8% of 1.2397/1.3381) on Friday.
The pair is on track for the second consecutive weekly close in red and the biggest one-week fall in two months that adds to negative picture.
Pessimism over Brexit as PM May will try again to pass her deal through the parliament after triple rejection and will likely step down after the parliamentary vote, further sours already weak sentiment. Firm bearish setup of daily/weekly studies supports scenario, but deeply oversold daily stochastic warns that bears may take a breather before resuming. Completion of weekly Head and Shoulders pattern was bearish signal and bears look for next negative signal on close below 1.2773 Fibo support (also higher low of 10 Feb) that would open way towards targets at 1.2668 (15 Jan low) and 1.2629 (Fibo 76.4%).
Thick falling weekly cloud and formation of 10/200SMA golden cross, maintain pressure.
Falling 5SMA (1.2854) and former low (1.2865) mark initial resistances which should ideally limit upticks.

Res: 1.2798; 1.2854; 1.2865; 1.2900
Sup: 1.2773; 1.2745; 1.2700; 1.2668

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.292
2. R2 1.2891
3. R1 1.2845
PP 1.2816
1. S1 1.277
2. S2 1.2741
3. S3 1.2695

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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