Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable hit new 7-week low (1.3670) in early European trading on Thursday, but the action is holding within narrow range and signaling consolidation after strong fall in past two days.
Wednesday’s penetration and close within rising daily cloud generated bearish signal, but bears may take a breather before attacking pivotal Fibo support at 1.3641 (38.2% of 1.2675/1.4238 upleg), as stochastic is in deep oversold territory on daily chart and 14-d momentum turned north.
Sterling remains under pressure on growing coronavirus third wave across the Europe and concerns that sharpened EU vaccine export rules may impact UK and potential upticks are expected to offer better opportunities to re-enter strong bearish market.
Daily cloud top (1.3792) and 55DMA (1.3807) should ideally keep the upside protected.
Violation of 1.3641 Fibo support would expose rising 100DMA (1.3610) and more significant daily cloud base (1.3560).
Res: 1.3708; 1.3756; 1.3792; 1.3807.
Sup: 1.3670; 1.3641; 1.3610; 1.3560.
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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