GBPUSD fell to the lowest in three weeks in early Thursday, pressured by renewed risk aversion on growing concerns that interest rates would stay high for longer period.
Bear-leg off 1.2288 (Oct 24 lower top) extends into third straight day, with break of pivotal Fibo support at 1.2108 (76.4% retracement of 1.2037/1.2337 recovery), 1.2090 (Oct 19 trough) and 1.2074 (Fibo 38.2% of larger 1.0348/1.3141 uptrend expected to generate fresh bearish signal for attack at 1.2037/29 (Oct 4 low/weekly Ichimoku cloud top) and psychological 1.20 support in extension.
Daily studies maintain strong negative momentum and MA’s are in full bearish setup, contributing to negative near-term outlook, though bears may face headwinds as stochastic is entering oversold territory, (signal is already developing on hourly and 4-h charts).
Upticks should be capped at 1.2150/70 zone to keep bears intact and offer better selling opportunities.
Caution on extension and close above 1.2200 zone which would sideline immediate bears.
Res: 1.2111; 1.2158; 1.2176; 1.2208.
Sup: 1.2052; 1.2037; 1.2000; 1.1915.
