GBP/USD outlook: Sterling remains in red for the second day following upbeat US NFP
Cable remains under pressure on Monday and probes again through 100DMA (1.3508) which contained Friday’s drop (the pair was down 0.5% for the day) as pound came under increased pressure from better than expected US jobs data which inflated dollar.
Fresh weakness cracks next pivotal supports at 1.3497/92 (daily cloud top / 50% retracement of 1.3357/1.3627 rally) with daily close below here to further weaken near-term structure and confirm lower top at 1.3627 (Feb 3 high) and expose supports at 1.3461/21 (Fibo 61.8% and 76.4% of 1.3357/1.3627 respectively). Read more...
GBP/USD: Still room for a move to 1.3645 – UOB
In opinion of FX Strategists at UOB Group, Cable could still advance further and revisits the 1.3645 level in the short-term horizon.
24-hour view: “GBP pulled back to a low of 1.3505 last Friday before closing on a soft note at 1.3525 (-0.54%). While downward momentum has not improved by much, the pullback in GBP could dip below 1.3500 first before stabilization is likely. The next support at 1.3470 is unlikely to come under threat. On the upside, a break of 1.3590 (minor resistance is at 1.3560) would indicate that the current weakness has stabilized.” Read more...
GBP/USD to face renewed bearish pressure with a drop below 1.3520
The GBP/USD pair is having a difficult time making a decisive move in either direction early Monday but a drop below 1.3520 could attract sellers, according to FXStreet’s Eren Sengezer.
“The Fibonacci 38.2% retracement level of the latest uptrend seems to have formed support at 1.3520. In case GBP/USD falls below that level and starts using it as resistance, 1.3500 (Fibonacci 50% retracement, 50-period SMA on the four-hour chart) aligns as the next bearish target before 1.3460 (Fibonacci 61.8% retracement).” Read more...
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