GBP/USD Outlook: Cable was shaken strongly by news that proved to be false

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable was riding on a roller-coaster for a few minutes at the beginning of the US session, jumping up and down within 1.2730/1.2830 range, with action being sparked by report that DUP has agreed on main points that opened way for final steps towards Brexit deal.
However, news proved to be false as the party leader dismissed the statement, but pound hasn't given all gains back and currently ranging at 1.2800 zone. The latest move showed pound's strong sensitivity on Brexit vibes, suggesting that strong reaction could be expected on final decision of UK/EU talks. The latest action spiked to new 5-month high (1.2838) but today's action is so far shaped in long-legged Doji that signals indecision, as markets await final verdict.
Studies remain in bullish setup on daily chart, with repeated close above 200DMA to confirm bullish stance, however, near-term direction will be determined by the outcome of Brexit negotiations.

Res: 1.2800; 1.2838; 1.2865; 1.2900
Sup: 1.2770; 1.2706; 1.2656; 1.2597

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

1. R3 1.3056
2. R2 1.2928
3. R1 1.2856
PP 1.2729
1. S1 1.2657
2. S2 1.253
3. S3 1.2458

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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