GBP/USD outlook: Bulls face headwinds from psychological 1.20 level but key Fibo barrier at 1.2093 is still in focus

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable stands at the front foot in European trading on Thursday, following bullish signal on previous day’s close above 1.1832 (Fibo 23.6% of 1.3199/1.1409) but bulls face headwinds on approach to psychological 1.20 barrier, with near-term action being weighed by weak UK retail sales data.
The pair is lacking momentum for now that may delay bulls but bias is expected to remain positive while the action holds above broken Fibo barrier at 1.1832 (reinforced by falling 10DMA).
Weak dollar contributes to pound’s strength, with break of 1.20 level to expose key Fibo barrier at 1.2093 (38.2% of 1.3199/1.1409), violation of which would generate reversal signal.

Res: 1.1973; 1.2000; 1.2093; 1.2129
Sup: 1.1832; 1.1775; 1.1741; 1.1709

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

1. R3 1.2357
2. R2 1.2165
3. R1 1.2022
PP 1.1831
1. S1 1.1688
2. S2 1.1496
3. S3 1.1354

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.

EUR/USD struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.