GBP/USD Outlook: bulls remain in play after last week's 1.2% advance

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable is holding well above key 1.30 support in early Monday’s trading and consolidating after last week’s 1.2% advance.
Main boost for pound last week was change of the finance minister in PM Jonson’s cabinet as new finmin Sumak is seen more compliant with Johnson’s expansionary policy.
Long bullish weekly candle underpins the action, with rising bullish momentum on daily chart adding to positive signals, but bulls may hold in extended consolidation, following repeated failure to clear 55DMA (1.3064) and overbought stochastic.
Strong bids are expected on 1.30 zone which needs to hold and keep bullish bias for break through 55DMA and pivotal Fibo barrier at 1.3080 (61.8% of 1.3209/1.2871) that would generate strong signal for extension of bull-leg from 1.2871 (10 Feb low).

Res: 1.3064; 1.3080; 1.3129; 1.3183
Sup: 1.3028; 1.3000; 1.2980; 1.2951

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

1. R3 1.3138
2. R2 1.3101
3. R1 1.3075
PP 1.3038
1. S1 1.3011
2. S2 1.2974
3. S3 1.2948

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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