GBPUSD – near-term bias turns negative and favors attack at key 1.3302 support

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable came under pressure in early hours of European session and broke below pivotal supports at 1.3401 (10 SMA) and 1.3374 (20SMA), weakening near-term structure.
Fresh bearish acceleration at the beginning of American session approached key support at 1.3303 (12 Dec low/30SMA/daily Kijun-sen) and shifted near-term bias lower.
Fresh bears are on track to fully retrace 1.3302/1.3464 recovery phase and signal continuation of bear-leg from 1.3549 (01 Dec high).
Firm break below 1.3302 handle is expected to undermine larger bulls from 1.3038 and generate stronger bearish signal for extension towards 1.3253 (55SMA/daily cloud top) and 1.3233 (Fibo 61.8% of 1.3038/1.3549 ascend). Broken 20/10 SMA's now act as resistances and should keep the upside protected.
The pair is also on track for the second straight bearish weekly close which supports negative scenario.

Res: 1.3374; 1.3415; 1.3447; 1.3464
Sup: 1.3303; 1.3253; 1.3233; 1.3196

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3541
2. R2 1.3504
3. R1 1.3467
PP 1.343
1. S1 1.3393
2. S2 1.3355
3. S3 1.3318

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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