Slobodan Drvenica
Windsor Brokers
Cable consolidates above new 20-month low at 1.2506, posted on Monday, after 1.10% fall (the biggest one-day fall in Dec).
Pound fell sharply after UK PM Theresa May decided to postpone parliamentary vote on Brexit deal, with rising concerns about possible scenario of chaotic exit of the UK from the European Union, sparking strong sell-off.
Fresh bears met target at 1.2508 (Fibo 76.4% of 1.1930/1.4376, 2016/2018 recovery phase) and could travel lower as bearish sentiment soured further on rising uncertainty.
Fibonacci projections at 1.2418 and 1.2268 (138.2% & 161.8% of bear-leg from 1.3297, 20 Sep high) mark next targets, with 2016 post-Brexit vote lows at 1.20 zone, coming in focus.
Corrective upticks could be seen as positioning for fresh push lower and expected to be capped by former lows at 1.2661/95.
UK jobs data, due today, could provide fresh signals, as forecasts show increase in employment and fall in jobless claims in Nov, while another key indicator, average earnings is expected to show unchanged result at 3%.
Better than expected releases today could boost pound, but stronger bullish signals, which would neutralize strong downside risk, could be expected on break above 1.2719 (falling 10SMA) and 1.2773 (falling 20SMA).
Res: 1.2600; 1.2661; 1.2695; 1.2719
Sup: 1.2551; 1.2506; 1.2418; 1.2365
Interested in GBPUSD 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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