GBP/USD outlook: Bears look for push though daily cloud base after consolidation
GBP/USD
Cable is holding in extended consolidation around cracked psychological 1.30 support as larger bears are taking a breather for consolidation above key supports.
Near-term price action holds within daily Ichimoku cloud (spanned between 1.3063 and 1.2965) with consolidation range being capped by cloud top and falling 10DMA, which adds to bearish bias.
Negative momentum remains strong on daily chart and Tenkan/Kijun-sen diverged after creating bear-cross, maintaining downside pressure.
Bears eye key supports at 1.2960 zone (daily cloud base / Fibo 61.8% of 1.2864/1.3434 / 100DMA), firm break of which to generate strong bearish signal for continuation of larger downtrend from 1.3434 (2024 high of Sep 26) towards next targets at 1.2846 (Fibo 76.4%) and 1.2798 (200DMA).
Only sustained break above daily cloud would defer and open way stronger bounce.
Res: 1.3000; 1.3034; 1.3063; 1.3102.
Sup: 1.2965; 1.2958; 1.2900; 1.2846.
Interested in GBP/USD technicals? Check out the key levels
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.
