GBP/USD outlook: Risk aversion keeps pound under pressure but bears face headwinds

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable extends a steep fall into third straight day and hit a four-week low (1.3661) on Monday. Strong risk aversion in the market lifts the dollar and depresses stocks, keeping the pound under increased pressure.

Bears extended below 1.3700 handle but faced headwinds on approach to pivotal Fibo support at 1.3647 (38.2% of 1.2675/1.4249 ascend) and also from rising thick weekly cloud (cloud top lays at 1.3698).

Daily techs in full bearish configuration support the action but oversold stochastic suggests that bears may take a breather before firmly breaking through 1.3698/1.3647 pivots.

Broken daily Kijun-sen (1.3757) marks solid resistance which should limit upticks and keep bears in play for attack at 1.3601 (Aug 20 low) and 1.3571 (July 20 low).

Res: 1.3723; 1.3747; 1.3757; 1.3787.
Sup: 1.3661; 1.3647; 1.3601; 1.3571.

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

1. R3 1.3878
2. R2 1.3845
3. R1 1.3793
PP 1.3761
1. S1 1.3708
2. S2 1.3676
3. S3 1.3624

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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