GBP/USD outlook: Near-term action looks for clearer direction signal as daily studies are mixed

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable is standing at the front foot at the start of the week, though recovery attempts were so far limited.

Near-term action remains capped by the top of rising daily cloud for the third consecutive day, with strong upside rejection on Friday, signaling lack of strength for more significant recovery for now.

Signals on daily chart are mixed, as daily cloud top and formation of 10/55DMA bear cross (1.2404) weigh, while fading negative momentum and north-heading stochastic about break out of oversold zone, underpins.

We look for initial signals on clear break above 1.2400 resistance zone (bullish) or loss of 1.2300 support zone (new two-month low / 100DMA) to signal near-term direction.

Violation of upper pivots would open way for stronger recovery and expose targets at 1.2450/1.2500 zone, while break below lower triggers would risk extension of pullback from 1.2679 (2023 high) towards supports at 1.2240/1.2180.

Res: 1.2400; 1.2450; 1.2472; 1.2500.
Sup: 1.2310; 1.2288; 1.2241; 1.2180.

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

1. R3 1.2476
2. R2 1.2435
3. R1 1.2391
PP 1.2351
1. S1 1.2307
2. S2 1.2267
3. S3 1.2223

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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