GBPUSD penetrated daily cloud; strong bullish signal on break higher

GBPUSD

Cable closed in the daily cloud on Friday, ending strong 1.2100/1.2400 rally last week. The pair was up 1.85% for the week, driven mainly by weaker dollar and broke some important technical barriers that further accelerated the rally.
Fresh upside extension in early Monday trading, took out 100 SMA barrier at 1.2407 and is pressuring daily cloud top at 1.2435, which is the highest traded in the session so far.
Firm break above the cloud is expected to generate strong bullish signal for extension of bull-leg from 1.2107 (14 Mar low) towards targets at 1.2470 zone, with attack at psychological 1.2500 barrier not ruled out.
Daily MA's turned into bullish setup and support scenario, however, corrective dips could be expected meantime on strongly overbought slow stochastic.
Daily cloud base, reinforced by 55SMA offers solid support at 1.2379, with extend downticks required to stay above broken 20 SMA at 1.2316.
Sustained break below the latter would generate reversal signal.

Res: 1.2435; 1.2459; 1.2476; 1.2500
Sup: 1.2409; 1.2379; 1.2337; 1.2316

GBPUSD

 

Interested in GBPUSD technicals? Check out the key levels

    1. R3 1.2407
    2. R2 1.2401
    3. R1 1.2393
  1. PP 1.2387
    1. S1 1.2378
    2. S2 1.2373
    3. S3 1.2364

 

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.