GBPUSD crashes on stronger dollar; cracks strong 1.2087 support

Slobodan Drvenica Windsor Brokers

GBPUSD

Sharp fall on Tuesday tokk out supports at 1.2169 and 1.2134 and briefly probed below 1.2100 handle and dented key near-term support at 1.2087 (11 Oct low). Cable accelerated lower sharply after repeated failures to clearly break above sideways-moving daily 10SMA (currently at 1.2223) which was seen as minimum requirement for signaling recovery after past three days descend found footstep at 1.2169.
The pair is now on track for strong bearish daily close, which will generate negative signal for further weakness.
Loss of the last solid support at 1.2087 will signal an end of near-term consolidative phase that was capped at 1.2330 and open way towards key support at 1.1197 (07 Oct spike low), loss of which would trigger bear leg towards levels last traded in 1985.
Hesitation at 1.2000 zone could be expected, as south-heading daily RSI is in oversold territory, but no reversal signal being generated so far.
Another strong bearish signal comes from monthly chart, as cable is on track for the strongest monthly bearish close after June’s post-Brexit vote sharp fall.

Res: 1.2140; 1.2169; 1.2200; 1.2238

Sup: 1.2087; 1.1997; 1.1870; 1.1790

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

1. R3 1.2247
2. R2 1.2238
3. R1 1.2230
PP 1.2221
1. S1 1.2213
2. S2 1.2204
3. S3 1.2196

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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