GBPUSD remains at the back foot in early Wednesday but holding above pivotal support at 1.2360
Cable extends weakness below 1.2400 handle in early Wednesday’s trading, after negative signal was generated on previous day’s strong 1.2594/1.2439 fall that left long bearish daily candle.
Traders are nervous about today’s Article 50 triggering that inspired recent strong sell-off (cable is down around 1.5% from Tuesday’s opening until now).
Today’s bearish extension broke below first pivot at 1.2420 (daily cloud top /100SMA) and eyeing next strong support at 1.2360 zone (daily cloud base, reinforced by Kijun-sen line), break of which would generate another strong bearish signal for further weakness.
Extended weakness below 1.2300 (Fibo 61.8% of 1.2107/1.2613 upleg) is needed to confirm reversal.
Near-term studies are firmly bearish while daily bulls were dented but still holding strong bullish momentum that keep alive hopes of fresh rallies. Current easing should be contained above daily cloud base to keep this scenario in play.
Return above daily cloud and lift above daily Tenkan-sen (1.2466) would generate stronger bullish signal.
Res: 1.2420; 1.2466; 1.2494; 1.2522
Sup: 1.2374; 1.2360; 1.2322; 1.2300
Interested in GBPUSD technicals? Check out the key levels
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.
