GBPUSD – risk of deeper pullback exists

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable is trading in narrowing consolidation under fresh high at 1.2904, with pullback being so far contained 1.2770 (lows of past two days).
Strong bullish sentiment after Tuesday’s surge remains firmly in play and favors further upside, however, extended easing cannot be ruled out as slow stochastic is reversing from overbought territory on daily chart.
Next significant support at 1.2755 (Fibo 38.2% of Tuesday’s rally) should ideally contain, but scenario for deeper dips towards 1.2709 and 1.2663 (50% and 61.8% retracement levels respectively) remains in play.

Weaker than expected UK Retail sales (-1.8% m/m in March vs -0.3% forecast at +1.7% in Feb) may drag the pair lower.

Res: 1.2833; 1.2859; 1.2904; 1.2950
Sup: 1.2770; 1.2755; 1.2709; 1.2663

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2927
2. R2 1.2888
3. R1 1.2851
PP 1.2812
1. S1 1.2775
2. S2 1.2736
3. S3 1.2699

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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