GBP/USD outlook: Cable hits 11-week low, pressures 200DMA support

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable extends weakness into third straight day (down nearly 0.5% in Asia/early Europe on Monday) and pressures strong 1.3700 support zone (round-figure/200DMA).

Last week’s break below the triangle and today’s extension below former low at 1.3731 (July 2) is bearish signal.

Daily techs maintain bearish momentum, but oversold conditions suggest that bears may face headwinds on approach to 200DMA pivot, which guards a higher base at 1.3670 (Mar/Apr lows).

Upticks should stay below falling 10DMA (1.3816) to keep bearish bias and offer better selling opportunities, but break of 200DMA, 1.3670 base and pivotal Fibo support at 1.3647 (38.2% of 1.2675/1.4249) is required to signal bearish continuation.

Res: 1.3777; 1.3815; 1.3842; 1.3862.
Sup: 1.3692; 1.3670; 1.3647; 1.3600.

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

1. R3 1.3936
2. R2 1.3899
3. R1 1.3835
PP 1.3798
1. S1 1.3733
2. S2 1.3696
3. S3 1.3632

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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