Technical Analysis

Technical Outlook: GBPUSD – Extended Bulls May Take A Breather Under Strong Fibo Barrier At 1.3266

Typography

Cable met its target and strong barrier at 1.3266 (Fibo 38.2% of 1.3655/1.3026 descend) on Thursday as recovery rally from 1.3026 low extends into fourth straight day. Softer dollar on Fed's divided view on inflation helped pound but bulls face headwinds at 1.3266 pivot and the pair may stay some time in consolidation before fresh attempts higher. Broken 10SMA which now acts as initial support at 1.3214 and top of thick daily cloud at 1.3200 are expected to contain dips. Otherwise, stronger bearish signals could be expected on sustained break below 1.3200/1.3175 supports.

Res: 1.3266, 1.3318, 1.3341, 1.3400
Sup: 1.3225, 1.3214, 1.3200, 1.3175