Slobodan Drvenica
Windsor Brokers
GBPUSD
Cable opened with gap-lower, coming under strong pressure on increased concerns that Britain would leave European Union, following comments of influential London Major Boris Johnson, who supported Brexit campaign. Johnson’s comments offset positive sentiment, gained on Friday’s EU-UK agreement, which aimed to keep Britain in the bloc.
The pair opened with some 120-pips gap lower and accelerated further at the beginning of European session, after choppy Asian trading.
Bearish sentiment that prevails in near-term action, was additionally boosted by recent comments. Sterling hit fresh session low at 1.4172, after surging through target at 1.4216, Fibonacci 76.4% of 1.4078/1.4665 correction, as lower 20d Bollinger band offered temporary supports. Expanding bands suggest further action, with daily MA’s in full bearish setup, after 30SMA capped recovery action at 1.4385 and bear-cross of 10/20SMA has formed.
Bears are looking for next target at 1.4147, 29 Jan trough, with extension to key 1.4078, 21 Jan low, expected in further bearish acceleration, to fully retrace 1.4078/1.4665 correction.
Initial resistances lay at 1.4233/45 zone, lows of 17/19 Feb, followed by Asian post-gap high at 1.4302 and top of thin hourly cloud at 1.4320, where extended rallies should be capped.
Falling daily 30SMA at 1.4360 and Friday’s recovery top at 1.4385, mark upside breakpoints.
Res: 1.4233; 1.4247; 1.4302; 1.4360
Sup: 1.4172; 1.4147; 1.4100; 1.4078
Cable opened with gap-lower, coming under strong pressure on increased concerns that Britain would leave European Union, following comments of influential London Major Boris Johnson, who supported Brexit campaign. Johnson’s comments offset positive sentiment, gained on Friday’s EU-UK agreement, which aimed to keep Britain in the bloc.
The pair opened with some 120-pips gap lower and accelerated further at the beginning of European session, after choppy Asian trading.
Bearish sentiment that prevails in near-term action, was additionally boosted by recent comments. Sterling hit fresh session low at 1.4172, after surging through target at 1.4216, Fibonacci 76.4% of 1.4078/1.4665 correction, as lower 20d Bollinger band offered temporary supports. Expanding bands suggest further action, with daily MA’s in full bearish setup, after 30SMA capped recovery action at 1.4385 and bear-cross of 10/20SMA has formed.
Bears are looking for next target at 1.4147, 29 Jan trough, with extension to key 1.4078, 21 Jan low, expected in further bearish acceleration, to fully retrace 1.4078/1.4665 correction.
Initial resistances lay at 1.4233/45 zone, lows of 17/19 Feb, followed by Asian post-gap high at 1.4302 and top of thin hourly cloud at 1.4320, where extended rallies should be capped.
Falling daily 30SMA at 1.4360 and Friday’s recovery top at 1.4385, mark upside breakpoints.
Res: 1.4233; 1.4247; 1.4302; 1.4360
Sup: 1.4172; 1.4147; 1.4100; 1.4078
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.
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