Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable extends weakness on Wednesday, following 0.7% drop previous day, after President Trump deflated risk mode by calling off stimulus talks.
The pound came under fresh pressure today after Ireland highlighted EU-UK fishing problem, the one of key obstacles in trade talks.
Monday's rejection at strong 1.30 resistance and subsequent fall that formed bearish engulfing pattern on daily chart, weighs on near-term action, with today's probe below pivotal daily cloud base (1.2866) boosting negative signal.
Daily close below 1.2880/66 pivots (Fibo 38.2% of 1.2675/1.3007/daily cloud base) would confirm bearish signals and open way for further easing. Brexit trade talks remain key event and pound could be hit hard if the European Union and Britain fail reach a trade deal.
Res: 1.2929; 1.2982; 1.3007; 1.3016
Sup: 1.2866; 1.2845; 1.2801; 1.2753
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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