GBP/USD Outlook: Bears retake control as 100SMA continues to cap

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable gets under fresh pressure in early European trading on Thursday after brief recovery attempts in Asia were capped by 100SMA (the action repeatedly closed below 100SMA in past three days).
Wednesday's bearish candle with long upper shadow marked strong upside rejection (falling 10SMA capped upticks) and weighs.
Strong bearish momentum adds to negative outlook, but bullish divergence on daily stochastic may slow bears.
Overall picture remains negative and favors selling upticks (ideally under 100SMA) with extended upticks to be capped by converged 10/30SMA's (1.2930).
Bears eye initial targets at 1.2812 (55SMA) and 1.2786 (daily cloud top, as cloud twists next week and remains magnetic), with stronger bearish acceleration to look for test of 1.2710 (Fibo 61.8% of 1.2397/1.3217).

Res: 1.2884; 1.2904; 1.2930; 1.2989
Sup: 1.2812; 1.2786; 1.2710; 1.2668

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3034
2. R2 1.2997
3. R1 1.2922
PP 1.2885
1. S1 1.2811
2. S2 1.2773
3. S3 1.2699

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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