GBP/USD outlook: Directionless mode extends, awaiting fresh signal
GBP/USD
Cable enters the US session on Monday in red after short-lived rally, inspired by renewed risk mode, pushed the price to a ten-day high in early European trading.
The price remains within the range which extends into sixth consecutive day, defining near-term price action as directionless, capped by daily Kijun-sen and supported by daily Tenkan-sen, after the action repeatedly failed to register a clear break on either side.
Strong negative momentum on daily chart and falling daily cloud weighing on the action, keeps the overall picture negative, but break of either pivot (daily Tenkan-sen/Kijun-sen) is required to generate initial direction signal.
The upside break would expose targets at 1.2386/1.2405 (Fibo 61.8% of 1.2666/1.1933/June 16 recovery peak) and unmask more significant daily cloud base (1.2481) and Fibo 76.4% retracement (1.2493).
Loss of daily Tenkan-sen support (1.2193) would risk drop to 1.2114 /1.2045 (Fibo 61.8% / 76.4% of 1.1933/1.2406 respectively) and open way for renewed probe through psychological 1.20 support.
Res: 1.2300; 1.2332; 1.2360; 1.2406.
Sup: 1.2253; 1.2193; 1.2160; 1.2114.
Interested in GBP/USD technicals? Check out the key levels
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.
