GBP/USD outlook: Bulls are taking a breather after massive gains last week

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable edges lower on Monday following last week's massive rally (6.6%) as bulls face headwinds from weekly cloud despite penetration and weekly close within the cloud. Overbought stochastic adds to consolidation signals but the action remains underpinned by massive weekly bullish candle and so far holding above solid support at 1.2304 (daily Kijun-sen/broken 50% of 1.3199/1.1409).
Bulls look for eventual break above 1.2516 (Fibo 61.8% of 1.3199/1.1409) that would generate bullish signal for extension of strong rally from 1.1409 (20 Mar low).
Only extended pullback below 1.2093 (broken Fibo 38.2%) would sideline bulls.

Res: 1.2419; 1.2485; 1.2516; 1.2661
Sup: 1.2326; 1.2304; 1.2200; 1.2131

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

1. R3 1.2935
2. R2 1.271
3. R1 1.2582
PP 1.2358
1. S1 1.2229
2. S2 1.2005
3. S3 1.1876

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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