GBP/USD outlook: Bears probe again through key 1.30 support
GBP/USD
Cable remains in a negative mode in early Monday and probed again through key 1.30 support (psychological/Mar 15 low), following last Friday’s short-lived dip to 1.2982 (the lowest since Nov 2020).
Rising US dollar keeps the pound in defensive, while weaker than expected UK Feb GDP data added pressure to the currency, threatening of a final clear break of 1.30 pivot that would risk extension towards 1.2855/ 20 zone (lows of Nov/Oct 2020 respectively).
Quick bounce from the levels below 1.30 on Friday/today, signals that bears face strong headwinds here and may struggle further in attempts to break lower, however, near-term action remains biased lower and extended consolidation is likely to precede fresh leg lower.
The notion is supported by rising negative momentum on daily chart and moving averages in full bearish setup, with upticks to offer better selling opportunities while holding below 1.3100 zone (falling 10DMA/trendline resistance/Fibo 38.2% of 1.3298/1.2982 bear-leg).
Res: 1.3054; 1.3085; 1.3102; 1.3140.
Sup: 1.3000; 1.2982; 1.2900; 1.2855.
Interested in GBP/USD technicals? Check out the key levels
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.
