GBPUSD – Tenkan-sen holds pullback for now; politics seen as main driver today

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable fell back to 1.2700 support zone (daily Tenkan-sen/hourly cloud top) after posting marginally higher recovery high at 1.2759 on Monday.
The second attempt to clearly break above 1.2737 pivot (Fibo 38.2% of 1.2977/1.2588 downleg) was so far unsuccessful, however, bullish stance is expected to remain in play while 1.2700 support holds.
Markets are awaiting an announcement of Tory/DUP deal which could be supportive for sterling for fresh extension of last week's strong recovery rally from 1.2588 towards strong resistance zone at 1.2790/1.2815 (falling 20SMA/14-19 June lower platform).
Conversely, break and close below 1.2700 would generate fresh bearish signal for extended pullback from session high at 1.2759.

Res: 1.2737; 1.2759; 1.2790; 1.2815
Sup: 1.2700; 1.2674; 1.2653; 1.2625

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2764
2. R2 1.2755
3. R1 1.2749
PP 1.2741
1. S1 1.2735
2. S2 1.2726
3. S3 1.2720

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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