GBP/USD outlook: Break of pivotal supports risks further weakness

Slobodan Drvenica Windsor Brokers

GBP/USD

Fresh leg lower extends into third straight day, with increasing downside risk seen after break of pivotal supports at 1.2170/22 (trendline support / Oct 13 former higher low).

Close below 1.2122 to confirm signal and expose targets and key near-term supports at 1.2037/00 Oct 4 new multi-month low / psychological).

Daily chart studies are bearish, as south-heading 14-d momentum is going deeper into negative territory and moving averages remain in bearish setup, adding to weakening near-term structure, though bears may face headwinds from oversold conditions.

Upticks should be capped under broken bull trendline to keep bears in play and offer better selling opportunities.

Res: 1.2145; 1.2169; 1.2203; 1.2260.
Sup: 1.2074; 1.2037; 1.2000; 1.1915.

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

1. R3 1.2263
2. R2 1.2237
3. R1 1.2189
PP 1.2163
1. S1 1.2115
2. S2 1.2089
3. S3 1.2041

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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