GBP/USD outlook: Bullish near-term bias above 10DMA

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable regained traction on improved risk sentiment and probes above 1.20 after recent pullback from a multi-month high (1.2153) found footstep at 1.1957 (rising 10DMA).

Larger uptrend remains intact but pausing after a failure on approach on falling 200DMA (1.2166).

Strong bullish momentum on daily chart and Tenkan-sen/Kijun-sen in bullish configuration add to positive near-term outlook, with the action holding above 10DMA seen as a minimum requirement and lift above 1.2000/48 (psychological / 50% retracement of 1.3748/1.0348) to confirm bullish stance for renewed attack at 200DMA, violation of which would signal bullish continuation.

Caution on loss of 10DMA handle which would signal deeper pullback and put bulls on hold.

Res: 1.2048; 1.2166; 1.2200; 1.2286.
Sup: 1.1940; 1.1872; 1.1753; 1.1647.

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

1. R3 1.2242
2. R2 1.218
3. R1 1.2064
PP 1.2002
1. S1 1.1887
2. S2 1.1825
3. S3 1.1709

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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