HomeContributorsTechnical AnalysisTechnical Outlook: GBPUSD – Rising Downside Risk On Formation Of Reversal Pattern...

Technical Outlook: GBPUSD – Rising Downside Risk On Formation Of Reversal Pattern And Return Into Daily Cloud


Technical Outlook: GBPUSD – Rising Downside Risk On Formation Of Reversal Pattern And Return Into Daily Cloud

Cable stays in red in early European trading on Wednesday and returned back into daily cloud after Tuesday’s rally spiked at 1.2978 but subsequent quick pullback erased all gains.

Tuesday’s action formed Shooting Star reversal pattern which was negative signal, with today’s close lower needed to confirm.

Formation of 20/55SMA bear cross also weighs on near-term action.

Downside attempts were so far contained by rising 100SMA and Fibo 38.2% of 1.2773/1.2978 upleg and firm break here would be next bearish signal, for extension towards daily Tenkan-sen 1.2875 and daily cloud base (1.2857).

Negatively aligned daily studies are also supportive for bearish near-term action.

Alternative scenario requires close above cracked Fibo 38.2% of 1.3268/1.2773 (1.2962) descend to shift near-term bias higher for test of 30SMA (1.2986) and psychological 1.3000 barrier.

UK data are due in a while and expected to generate fresh signals.

Res: 1.2929, 1.2962, 1.2986, 1.3000
Sup: 1.2900, 1.2875, 1.2857, 1.2821

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.

Featured Analysis

Learn Forex Trading