GBP/USD outlook: Pound extends weakness, pandemic low comes in focus

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable hit new lowest since March 2020, in extension of Monday’s 1% drop, with close well below 1.20 handle and former lows at 1.1958/30 (Sep 2019 / Oct 2016 lows respectively) and fresh extension lower on Tuesday, signaling that bears regained control.

Pound is pressured by rising dollar and risk aversion, which add to negative internal factors – political turmoil and slowing economic growth in Britain that raises threats of recession.

Daily techs show rising negative momentum and moving averages in full bearish setup that supports the action for final push towards Mar 2020 low (1.1409).

Price adjustments are expected to remain below strong barriers at 1.2000/13 (psychological / falling 10DMA) and offer better levels to re-enter bearish market.

Res: 1.1909; 1.1939; 1.2013; 1.2055.
Sup: 1.1807; 1.1727; 1.1669; 1.1611.

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

1. R3 1.2172
2. R2 1.2105
3. R1 1.2
PP 1.1933
1. S1 1.1828
2. S2 1.1761
3. S3 1.1656

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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