GBP/USD outlook: Fresh recovery acceleration opens way for retest of key barriers at 1.3443/44

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable jumped around a hundred pips on Monday morning, lifted by weaker dollar on surprise US credit rating downgrade and the latest EU/UK agreement on defense.

Fresh advance attempts to break above three-day congestion that would signal continuation of recovery from 1.3139 (correction low of May 12) which has already retraced 76.4% of 1.3444/1.3139 pullback.

Improving daily studies (MA’s returned to bullish setup / rising 14-d momentum is pressuring the centreline and on track to break into positive territory) while firmly bullish weekly studies add to the notion, particularly with bear-trap under Fibo support at 1.3163.

Close above 1.3400 zone (May 6 lower top / round-figure) is needed to validate fresh bullish signal and open way for retest of key barriers at 1.3443/44 (2024/2025 tops) where bulls are likely to face increased headwinds.

Res: 1.3402; 1.3444; 1.3500; 1.3557.
Sup: 1.3360; 1.3307; 1.3250; 1.3200.

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

1. R3 1.3412
2. R2 1.3372
3. R1 1.333
PP 1.329
1. S1 1.3248
2. S2 1.3208
3. S3 1.3166

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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