GBP/USD jumps from below 1.1700 to the 1.1850 zone
The GBP/USD pair bounced sharply, rising more than two hundred pips from the daily low and it is back in positive territory for the day. The bounce took place amid a decline of the US dollar and as Wall Street extends gains. Cable had bottomed out at 1.1633 and recently tested 1.1840/50. As of writing it trades at 1.1800/10, modestly higher for the day.
GBP/USD Outlook: cable dipped nearly three big figures after recovery ran out of steam
Cable lost traction and fell near 1.1700 handle in early US trading on Wednesday after recovery accelerated through Fibo 23.6% and 10DMA barriers (1.1832/87 respectively) but stalled after hitting a peak at 1.1973. The pair lost momentum, signaling that recovery phase from 1.1409 low may stay hold, but also threatening that brief correction might be over. Today's repeated close below 1.1832 (Fibo 23.6% of 1.3199/1.1409) would add to negative signals and shift near-term focus to the downside. Rising 5DMA (1.1622) marks pivotal support, loss of which would neutralize bulls and risk retest of 1.1409 (20 Mar low, the lowest since 1985).
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