GBP/USD outlook: Signals of an end of extended directionless mode still require a confirmation

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable is holding within a narrow consolidation in European trading on Wednesday, following Tuesday’s 0.64% drop, which generated an initial signal of an end of a multi-day directionless mode.

Fresh weakness touched strong supports at 1.2170 zone (50% retracement of 1.1933/1.2406/lows of June 22/23), but so far lacking strength for a clear break, which would confirm bearish signal and shift near-term focus lower.

Daily technical picture is bearish with strong negative momentum and MA’s in bearish setup, keeping near-term bias with bears, as sterling is weighed by month-end dollar buying.

However, risk of extended range-trading is expected to persist as long as the price action stays above 1.2170 zone pivots, but the downside will remain vulnerable while daily Kijun-sen (1.2300) caps.

Res: 1.2213; 1.2235; 1.2260; 1.2300.
Sup: 1.2170; 1.2114; 1.2045; 1.2000.

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

1. R3 1.2368
2. R2 1.233
3. R1 1.2257
PP 1.2219
1. S1 1.2145
2. S2 1.2107
3. S3 1.2034

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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