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.

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