GBP/USD Outlook: Bulls remain firm on weak dollar / Brexit negotiations optimism

Slobodan Drvenica Windsor Brokers

Cable cracked 100DMA barrier (1.2570) in extension of Monday’s 0.55% rally through 1.2500/16 (round-figure / Fibo 61.8% of 1.3199/1.1409).

Weakening dollar holds in red for the sixth straight day and underpin pound with fresh support coming from optimism over continuation of EU/UK Brexit negotiations.

Strong bullish momentum on daily chart also underpins the action, which looks for clear break above 100DMA to open key resistances at 1.2642/60 (former double-top / 200DMA).

Bids are expected at 1.2516/00 zone, with today’s close above these levels to keep bulls intact.

Res: 1.2570; 1.2600; 1.2647; 1.2660
Sup: 1.2516; 1.2500; 1.2467; 1.2396

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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