GBP/USD Outlook: Strong dollar keeps sterling under increased pressure

Slobodan Drvenica Windsor Brokers

GBPUSD

Bears pressure new ten-week low at 1.2886 in early Thursday's trading, as fresh bearish signal, in addition to Tue's break of key 200SMA, was generated on Wednesday's close below Fibo support at 1.2916 (76.4% of 1.2772/1.3381). There are no significant obstacles on the way towards key support at 1.2772 (14 Feb trough), but bears may take a breather on technical corrections, before continuing. Broken Fibo support at 1.2916 now reverted to initial resistance, with stronger upticks expected to remain below broken converged 200/100SMA's (1.2960/63). Politics are also one of pound's key drivers, as lawmakers from Conservative Party are frustrated by PM May's handling Brexit process and work on forcing her from the position of Prime Minister.

Res: 1.2916; 1.2940; 1.2963; 1.2993
Sup: 1.2886; 1.2832; 1.2800; 1.2772

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3024
2. R2 1.2994
3. R1 1.2948
PP 1.2918
1. S1 1.2873
2. S2 1.2842
3. S3 1.2797

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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