GBP/USD outlook: Mixed signals point to extended sideways mode, bullish bias above 1.41

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable ticked higher after better than expected UK March GDP (2.1% vs 1.3% f/c) but remains within Tuesday’s range, signaling that strong rally of past three days is paused.

Signals are mixed as positive momentum on daily chart is rising and moving averages in bullish setup are heading north, with Monday’s massive bullish candle underpinning the action, but overbought stochastic and long upper shadows of Mon/Tue daily candles warn that bulls are running out of steam.

Bullish continuation scenario requires extended consolidation above important support at 1.41 before bulls resume towards targets at 1.4181 (Feb 25 high) and 1.4238 (2021 peak).

On the other side, loss of 1.41 handle would open way for deeper pullback and expose initial supports at 1.4079/52 (Fibo 23.6% of 1.3800/1.4166 upleg / rising 5DMA), which guard key 1.4020/00 support zone (double-Fibo / psychological).

Await clearer signals on break of 1.4166 or 1.4100 pivots.

Res: 1.4146; 1.4166; 1.4181; 1.4200.
Sup: 1.4100; 1.4079; 1.4052; 1.4020.

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

1. R3 1.4234
2. R2 1.42
3. R1 1.4172
PP 1.4138
1. S1 1.4109
2. S2 1.4075
3. S3 1.4047

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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