GBP/USD outlook: Cable remains constructive

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable edged higher early Monday and pressure pivotal barrier at 1.3350 (Fibo 61.8% of 1.3423/1.3232 pullback / former recovery peak of Apr 24).

Series of higher lows since 1.3232 correction low, with fresh recovery being tracked by ascending 10DMA add to near term bullish bias, with sustained break of 1.3350 needed to confirm that corrective phase is over, and larger bulls look for fresh attack at key 1.3434 barrier (2024 top).

On the other hand, sharp drop in confidence in the UK economy (at the historical low) and signal that already fragile economy may weaken further, add to warnings that larger bulls may stall on approach to 1.3434.

Growing optimism on fading threats from the negative impact from US trade tariffs and initial signals of Ukraine war peace talks may offer fresh support to US dollar and push sterling in defensive.

The notion is supported by overbought weekly studies, fading bullish momentum and strong upside rejection last week (weekly candle with long upper shadow).

Also, momentum is overstretched and turned sideways on daily chart, along with RSI being close the border of overbought zone, although daily studies are overall still bullish.

Expect prolonged consolidation while the price action remains limited by 1.3423 (recent recovery peak) and 1.3254 (Fibo 23.6% of 1.2708/1.3423 upleg / correction low).

Loss of 1.3254/ 1.3200 to weaken near term structure and risk deeper correction towards 1.3150 (Fibo 38.2%) and 1.3121 (20DMA).

Res: 1.3400; 1.3434; 1.3515; 1.3588.
Sup: 1.3298; 1.3254; 1.3200; 1.3150.

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

1. R3 1.3417
2. R2 1.3379
3. R1 1.3349
PP 1.3311
1. S1 1.3281
2. S2 1.3244
3. S3 1.3213

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.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.