GBP/USD outlook: Hits new multi-month low, bears eye 1.2000 zone targets

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable fell to 14-month low on Thursday morning, as steep bear-leg off 1.2575 lower top extends into third straight day.

Strengthening dollar, crisis about Britain’s fiscal outlook and uncertainty over Trump’s tariff plan, were the key contributors to pound’s latest weakness.

Bearish technical picture on daily chart, as well as a number of weekly MA bear-crosses, add to negative near term outlook, with break below former low at 1.2299 (Apr 21) also generating a negative signal.

Bears eye targets at 1.2050 zone (Oct 2023 higher base) and psychological 1.2000 support, with limited corrective actions likely to precede fresh push lower.

Initial barrier lays at 1.2360 zone (broken Fibo 76.4% support) with extended upticks to stall under 1.2500 zone (former base / round figure) and offer better selling levels.

Res: 1.2360; 1.2400; 1.2455; 1.2500.
Sup: 1.2238; 1.2186; 1.2050; 1.2000.

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

1. R3 1.2638
2. R2 1.2566
3. R1 1.2464
PP 1.2393
1. S1 1.2291
2. S2 1.222
3. S3 1.2118

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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