GBP/USD outlook: Recovery extension cracks pivotal Fibo barrier

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable extends recovery from Wednesday’s two-month low (1.2675) after bears got trapped under 200DMA (1.2719) and ahead pivotal Fibo support at 1.2690 (38.2% of 1.1409/1.3482 rally).
Fresh advance also points to false break below the base of rising daily cloud (1.2759), with signal to be confirmed on weekly close within the cloud.
Rising momentum, reversal of daily stochastic from oversold zone and formation of 100/200DMA’s golden cross, support the action.
Recovery cracked initial barrier at 1.2801 (Fibo 38.2% of 1.3007/1.2675), ahead of sideways-moving 10DMA (1.2839) violation of which would open way for stronger correction.

Res: 1.2839; 1.2880; 1.2928; 1.2966
Sup: 1.2731; 1.2717; 1.2690; 1.2675

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

1. R3 1.288
2. R2 1.2831
3. R1 1.2789
PP 1.274
1. S1 1.2698
2. S2 1.2649
3. S3 1.2607

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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