GBP/USD Price Analysis: Cable moves above flat after finding support at 1.27
Cable has made a lower high lower low wave pattern but just recently found some support. The support level happened to be exactly at the 138.2% Fibonacci support area at the 1.27 figure. The next major support is the red line at 1.2615 and this looked like the logical area for the price to stop but the market found some bids ahead of the zone.
Above the current price level, the blue line at 1.2815 could be the next resistance. If the bears come out at that level then the aforementioned red support could be the target. Beyond that, there is another decent support level at 1.2265 which the bears could test but it is some way off at the moment.
GBP/USD: Selling pressure is mounting
Selling pressure is mounting. After the recent rebound failed around 1.3000, three decisive negative candles have driven Cable below the support at 1.2760. This has opened a test of 1.2650 which are the old highs from Q2 2020. With the increasingly negative configuration on momentum indicators, the market is selling into near term strength. A downtrend of the past three weeks is around 1.2900 so any near term rebound is a chance to sell.
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