GBP/USD outlook: Second Doji signals that bears might be losing traction

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable edged lower in early Monday and hit new marginally lower two-week low, after bears probed through pivotal supports at 1.2866/48 (Fibo 50% of 1.2590/1.3141 / 20DMA) though losses were limited and near-term action influenced by Friday’s Doji candle, being so far in the same shape.

Bears pressure next pivot at 1.2801 (Fibo 61.8%) violation of which would further weaken near-term structure for deeper pullback.

On the other hand, oversold stochastic and neutral RSI, suggest that bears may take a breather above 1.2800 zone, with bearish bias expected to remain intact while the price action stays below broken Fibo 38.2% level at 1.2931, while acceleration through upper pivots at 1.2974/1.3000 (10DMA / psychological) would revive bulls and signal an end of corrective phase.

Res: 1.2866; 1.2904; 1.2931; 1.2974.
Sup: 1.2801; 1.2750; 1.2720; 1.2673.

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

1. R3 1.2988
2. R2 1.2946
3. R1 1.29
PP 1.2858
1. S1 1.2811
2. S2 1.2769
3. S3 1.2723

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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