GBP/USD outlook: Steep post-US election bear leg extends below 1.2700

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable continues to trend lower, riding on the wave of so-called Trump trades, as dollar rose significantly on post-election euphoria.

Steep bear leg extends into fifth consecutive day and hit new multi-week low, coming close to target at 1.2664 (Aug 8 low) guarding 1.2612 (June 27 low) on renewed probe through 1.2700 support, after bears cracked this level on Wednesday but failed to register close below it.

Oversold conditions so far do not impact bears, but some price adjustment should be expected in coming sessions.

Broken Fibo support at 1.2732 reverted to initial resistance, with 200DMA (1.2818) to cap upticks and keep larger bearish structure intact for fresh push lower.

Res: 1.2700; 1.2782; 1.2818; 1.2836.
Sup: 1.2664; 1.2612; 1.2599; 1.2567.

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

1. R3 1.2836
2. R2 1.2803
3. R1 1.2753
PP 1.272
1. S1 1.2671
2. S2 1.2637
3. S3 1.2588

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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