GBPUSD Outlook: Focus turns lower after Monday’s gap-lower opening on negative Brexit news

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable opened with gap-lower at the beginning of the week, holding negative tone following last Friday’s bearish close with 0.57% daily loss.
Sterling came under increased pressure as British efforts to secure Brexit deal failed on talks over Britain’s border with Ireland.
The pair dipped to 1.3083 after opening with gap of 65 pips, probing below 1.3110/1.3088 support zone (converging 20/100/10 SMA’s / 50% retracement of 1.2921/1.3257 upleg), but without clear break so far.
Daily techs show strengthening bearish momentum and slow stochastic heading south after reversal from overbought territory, supporting fresh bears which need confirmation on close below 50% retracement at 1.3089 as well as 30SMA (1.3074).
Daily cloud twists next week and could also attract bears.
Brexit talks are expected to remain pair’s key driver, with risk dips below psychological 1.30 support seen on negative news.
Recovery attempts were so far capped by broken Fibo 38.2% support at 1.3129, with stronger bounce and filling today’s gap needed to sideline downside risk.

Res: 1.3129; 1.3146; 1.3178; 1.3217
Sup: 1.3083; 1.3050; 1.3012; 1.3000

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.334
2. R2 1.33
3. R1 1.3227
PP 1.3187
1. S1 1.3114
2. S2 1.3074
3. S3 1.3001

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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