GBP/USD outlook: Thursday's shooting star and stronger dollar weigh on sterling

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable accelerated lower in early Friday, driven by fading risk appetite and a stronger dollar.

Five-day rally 1.3823 (Apr 22 trough) showed signs of stall and Thursday’s action formed a shooting star candle, while today’s weakness added to signals of reversal on the daily chart.

Narrowing daily cloud twists next Tuesday (1.3878) and also attracts fresh bears which pressure 1.3900 support (50% retracement of 1.3823/1.3976), with a weekly close below here further weaken near-term structure and risk deeper drop towards 1.3877 (55DMA) and 1.3860 higher bases.

Fading bullish momentum on the daily chart contributes to negative signals.

Res: 1.3912; 1.3958; 1.3976; 1.4000.
Sup: 1.3900; 1.3877; 1.3860; 1.3846.

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

1. R3 1.4012
2. R2 1.3994
3. R1 1.3967
PP 1.395
1. S1 1.3923
2. S2 1.3905
3. S3 1.3879

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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