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Technical Outlook: GBPUSD – Risk Of Bearish Continuation On Break Below Daily Cloud

Cable trades in red on Monday and holding within daily cloud, after attempts in past four days failed to close below cloud top.

Fresh weakness tested strong support at 1.2850, provided by daily cloud base and Fibo 61.8% of 1.2588/1.3268 rally.

Eventual break and close below here is needed to signal resumption of broader downtrend from 1.3268 (03 Aug high), after bears paused for last week’s consolidation above rising daily cloud.

Negative outlook is supported by bearish setup of daily studies, with bear-cross of 10/55SMA’s forming today and offering additional pressure.

Sustained break below 1.2850 would open another key support at 1.2811 (12 July trough) and risk fresh bearish extension.

Broken 100SMA (1.2872) marks initial resistance, ahead of daily cloud top (1.2908) and last week’s congestion, reinforced by 55SMA at 1.2928, which is expected to limit extended upticks.

Res: 1.2872, 1.2908, 1.2928, 1.2970
Sup: 1.2850, 1.2811, 1.2749, 1.2700

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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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