GBP/USD
Cable stands at the back foot, weighed by Tuesday’s bearish daily candle with long upper shadow, formed after strong upside rejection on a false break of descending 10DMA and subsequent weakness. The action generated an initial signal of a bearish continuation pattern on a daily chart, which looks for more evidence to be confirmed.
Fresh bears need a daily close below 1.3770 pivots (Tuesday’s low / Fibo 76.4% of 1.3731/1.3897 recovery leg) to signal an end of the corrective phase.
This would confirm a bearish stance for a retest of last Friday’s low at 1.3731, violation of which would risk extension towards 1.3670 (Mar/Apr higher base) and 1.3580 (Fibo 23.6% of 1.1409/1.4249).
Falling 10DMA (1.3834) marks solid resistance which needs to continue capping and keep bears intact.
Res: 1.3803; 1.3834; 1.3897; 1.3919.
Sup: 1.3770; 1.3731; 1.3670; 1.3600.
Interested in GBP/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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