GBP/USD outlook: Recovery above daily cloud likely to be limited
Cable started to gain traction and edged higher on Wednesday morning, after the latest drop penetrated rising daily cloud (cloud top at 1.2702) but found firm ground at 1.2682 (100DMA) where dips were repeatedly rejected.
Subsequent rise may generate initial bullish signal on return and close above daily cloud, though more work at the upside (violation of daily Tenkan-sen at 1.2780 and lift above Fibo 38.2% of 1.3044/1.2672 at 1.2814) will be required to validate signal. Read more…
GBP/USD: Bulls push to test 1.2780 – UOB Group
Oversold decline has not stabilised; the Pound Sterling (GBP) could drop further to 1.2645. The next major support at 1.2610 is highly unlikely to come into view, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.
24-HOUR VIEW: “We did not anticipate GBP to drop sharply to 1.2674 yesterday (we were expecting sideways trading). While the decline is oversold, it has not stabilised. Today, GBP could drop to 1.2645 before stabilisation can be expected. The next major support at 1.2610 is highly unlikely to come into view. Resistance is at 1.2710; a breach of 1.2735 would suggest that the weakness in GBP has stabilised.”Read more…
