GBP/USD Outlook: Rising risk aversion turns Monday's action in red

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable started the week in red and erased the most of Friday's recovery, pressured by strong risk aversion. The pair was down 0.4% in Asia/early Europe on Monday and slid below cracked 100DMA (1.2949), turning daily MA's back to full bearish setup. Momentum and RSI turned south, adding to negative stance, as near-term action probed below 1.29 handle and pressuring Friday's low (1.2876) which guards key support at 1.2849 (20 Feb three-month low) break of which would signal continuation of larger downtrend towards targets at: 1.2768 (8 Nov low), 1.2736 (50% retracement of 1.1958/1.3514) and 1.2690 (200DMA). Daily Tenkan-sen provides initial resistance at 1.2959 after Friday's recovery attempts dented it but failed to close above, with sustained break higher needed to ease rising bearish pressure.

Res: 1.2919; 1.2959; 1.2987; 1.3000
Sup: 1.2876; 1.2849; 1.2822; 1.2768

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

1. R3 1.3113
2. R2 1.3047
3. R1 1.3005
PP 1.2939
1. S1 1.2897
2. S2 1.2831
3. S3 1.2789

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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