GBP/USD outlook: Cable – limited correction likely to precede fresh rise, US labor data in focus

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable is holding within a tight range on Wednesday morning, as two-day pullback found a footstep on broken Fibo support at 1.2585, though stronger dollar and weaker than expected UK data continue to sour the sentiment.

Traders await release of US labor data (ADP report is due later today and NFP on Friday) for fresh direction signals.

Technical studies on daily chart are bullishly aligned (positive momentum / MA’s mainly in bullish setup / oversold stochastic) which points to scenario of limited correction preceding fresh push higher.

Extended dips should hold above rising 20DMA (1.2518) and should not exceed 200DMA (1.2479) to keep short-term action biased higher, with break of recent tops (also Fibo 61.8% of 1.3141/11.2037) which recently capped multiple attacks, to signal bullish continuation.

Res: 1.2631; 1.2700; 1.2719; 1.2746.
Sup: 1.2577; 1.2518; 1.2500; 1.2467.

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

1. R3 1.2713
2. R2 1.2683
3. R1 1.2638
PP 1.2608
1. S1 1.2563
2. S2 1.2533
3. S3 1.2489

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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