GBP/USD outlook: Sterling remains in red for the second day following upbeat US NFP

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable remains under pressure on Monday and probes again through 100DMA (1.3508) which contained Friday’s drop (the pair was down 0.5% for the day) as pound came under increased pressure from better than expected US jobs data which inflated dollar.

Fresh weakness cracks next pivotal supports at 1.3497/92 (daily cloud top / 50% retracement of 1.3357/1.3627 rally) with daily close below here to further weaken near-term structure and confirm lower top at 1.3627 (Feb 3 high) and expose supports at 1.3461/21 (Fibo 61.8% and 76.4% of 1.3357/1.3627 respectively).

Daily RSI is heading south and 14-d momentum remains in the negative territory, adding to bearish signals.

Session high at 1.3552 (reinforced by 20DMA) marks solid resistance which should keep the upside protected and keep near-term bears in play.

Res: 1.3524; 1.3552; 1.3564; 1.3600.
Sup: 1.3490; 1.3461; 1.3421; 1.3400.

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

1. R3 1.3706
2. R2 1.366
3. R1 1.3596
PP 1.355
1. S1 1.3486
2. S2 1.344
3. S3 1.3375

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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