GBP/USD outlook: Bullish bias to remain intact above 10DMA

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable bounced from one-week low (1.3609) posted in early European session on Tuesday, lifted by fresh optimism among investors
The action in past two days closed repeatedly in red but managed to stay above 10DMA (1.3651) with today’s dip through 10DMA and probe through 20DMA pivot (1.3620), being so far short-lived.
Another close above 10DMA would keep near-term bias with bulls, but risk of deeper pullback exists, as momentum on daily chart turned sideways and stochastic is heading south after forming a bearish divergence.
Weak UK jobless data, although slightly below expectations, so far had limited impact, with markets turning focus on today’s vote on Janet Yellen as Treasury Secretary and tomorrow’s Fed policy meeting, expecting fresh signals.

Res: 1.3678; 1.3700; 1.3723; 1.3745.
Sup: 1.3651; 1.3620; 1.3570; 1.3520.

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

1. R3 1.3787
2. R2 1.3755
3. R1 1.3712
PP 1.3681
1. S1 1.3638
2. S2 1.3606
3. S3 1.3563

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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