GBPUSD is holding within narrow consolidation; bearish outlook while 1.40 caps

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable holds within narrow congestion between the top of thin daily cloud (1.3931) and psychological 1.40 barrier (also55SMA) on Wednesday.
Steep six-day fall from 1.4376 peak found footstep at cloud top and entered consolidation, also being supported by M&A news.
Upside attempts were so far limited as overall sentiment remains negative and was recently boosted dovish comments from BoE Governor Carney.
On the other side, strongly oversold slow stochastic on daily chart and north-turning 14-d momentum, show initial signs of correction.
Bullish scenario requires firm break above initial 1.40 pivot to signal extended recovery and expose next strong barrier at 1.4100 (20SMA).
Otherwise, bearish pressure would persist while 1.40 barriers caps and keep the downside vulnerable of fresh probes through daily cloud (1.3931/01) and extension towards 100SMA (1.3859).

Res: 1.4000; 1.4030; 1.4100; 1.4126
Sup: 1.3931; 1.3901; 1.3868; 1.3859

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.4075
2. R2 1.4032
3. R1 1.4005
PP 1.3962
1. S1 1.3935
2. S2 1.3891
3. S3 1.3864

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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