Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable remains offered on Tuesday hit new 4 ½ months low in extension of Monday’s 0.73% fall, driven by risk aversion on growing concerns on the global and local spread of Covid-19 Delta variant.
Investors continue to sell the pound, showing a very cautious reaction on freedom day – removal of most English coronavirus restrictions.
Monday’s close below 200DMA (1.36940 and extension below Apr-May higher base at 1.3670 and Fibo 38.2% of 1.2675/1.4249 at 1.3647, were strong bearish signals which require confirmation on an eventual close below these levels to signal reversal and confirm a double-top (1.4238/49, Feb/May tops).
Oversold daily techs suggest bears may pause after a three-day 1.3% drop and position for a fresh push lower.
Broken 200DMA should ideally cap upticks and keep bears intact.
Res: 1.3694; 1.3731; 1.3777; 1.3796.
Sup: 1.3647; 1.3628; 1.3565; 1.3519.
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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