GBPUSD remains within narrow consolidation supported by daily cloud

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable remains above daily cloud which proves to be very strong support, following several penetrations into cloud but failing to close below cloud top. The price action remains within narrow consolidation for the third consecutive day, with downside being held by daily cloud rising 100SMA, but upside attempts were limited at 1.2900 zone. Overall negative technical studies keep bias at the downside, but bearish continuation requires firm break below1.2848 (Fibo 61.8% of 1.2588/1.3268 rally) and daily cloud (spanned between 1.2863 and 1.2851) for confirmation. On the other side, bullish signal comes from slow stochastic emerging from oversold territory after forming bullish divergence pattern, which could support for further upside. Bullish scenario requires break above 55SMA (1.2929) and falling daily Tenkan-sen (1.2947) for confirmation.

Res: 1.2908; 1.2929; 1.2947; 1.2970
Sup: 1.2863; 1.2848; 1.2811; 1.2749

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.2959
2. R2 1.2935
3. R1 1.2901
PP 1.2877
1. S1 1.2843
2. S2 1.2819
3. S3 1.2785

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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