GBP/USD outlook: Near-term focus shifts lower after recovery stalled

Slobodan Drvenica Windsor Brokers

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

1. R3 1.3999
2. R2 1.3949
3. R1 1.3874
PP 1.3824
1. S1 1.3749
2. S2 1.3699
3. S3 1.3624

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.