GBPUSD bears are pausing on Monday after last week’s 1.2% fall, as oversold daily studies slowed the pace of fall, which registered the strongest acceleration last Thursday.
Consolidation was so far narrow, as the sterling remains weighed by strong dollar and overall bearish near-term structure.
Strong negative momentum on daily chart and MA’s in bearish setup signal that larger bears remain firmly in paly for further weakness, with additional bearish signal being generated on last week’s close below pivotal supports at 1.2640/26 (100DMA / Fibo 61.8% of 1.2307/1.3140 rally).
Former supports at 1.2626/40 reverted to initial resistances, with extended upticks to stay under the base of thick daily cloud (1.2724) to keep larger bears in play and offer better selling opportunities for fresh acceleration towards 1.2504 (Fibo 76.4%) and 1.2402 (200DMA) in extension.
Near-term action may also stay in sideways mode ahead of key economic releases from the US (due later this week) which are expected to generate stronger direction signals.
Res: 1.2626; 1.2640; 1.2689; 1.2704.
Sup: 1.2547; 1.2504; 1.2402; 1.2368.
