GBPUSD – fresh weakness on downbeat UK data revived near-term bears

Slobodan Drvenica Windsor Brokers

GBPUSD

Sterling fell after downbeat UK data and probed again below daily Ichimoku cloud top (1.2404).
Near-term focus is turning lower again on fresh attack at key support zone between 1.2421 and 1.2404 (consisting of 55SMA/100 SMA and daily cloud top) which was cracked on today's bearish acceleration to 1.2386 (session low). There is no clear break into daily cloud so far but bears are taking control and signal fresh weakness.
Corrective upticks from 1.2386 low should remain capped under daily Tenkan-sen (1.2463) that reverted to resistance and is reinforced by Fibo 61.8% retracement level of today's 1.2508/1.2386 fall.
Prolonged consolidation could be expected before bears clearly break into cloud for fresh bearish extension towards targets at 1.2345 (daily Kijun0sen) and 1.2307 (daily cloud base).
To neutralize mounting downside risk, break and close above daily Tenkan-sen line is required.

Res: 1.2433; 1.2463; 1.2480; 1.2508
Sup: 1.2404; 1.2386; 1.2345; 1.2307

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2597
2. R2 1.2540
3. R1 1.2498
PP 1.2440
1. S1 1.2398
2. S2 1.2341
3. S3 1.2299

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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