GBP/USD outlook: Cable rose after strong data by was deflated by fresh euro's weakness

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable probed again through pivotal Fibo barrier at 1.3243 (61.8% of 1.4376/1.1409) and approached new 2020 high (1.3266), inflated by better than expected UK retail sales data, but failed to break higher. Upbeat UK PMI's should also contribute, but the action is weighed down Euro's attempts to correct deeper before resuming uptrend. Fading bullish momentum and south-heading RSI/stochastic add to negative signals, suggesting that sterling may ease further after triple rejection at key Fibo barrier, which could also create a bull-trap on weekly chart. Key supports at 1.3000/1.2918 (higher base / 200DMA) are expected to hold and keep bulls in play.

Res: 1.3224; 1.3243; 1.3300; 1.3339
Sup: 1.3156; 1.3110; 1.3077; 1.3000

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

1. R3 1.3431
2. R2 1.3328
3. R1 1.3271
PP 1.3168
1. S1 1.3111
2. S2 1.3008
3. S3 1.2951

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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