GBP/USD outlook: Risk of consolidation/correction before final push through june high rises
GBP/USD
Cable is holding within narrow range below new 6-week high at 1.2767 in early Thursday's trading, after repeated close above 200DMA (Tue/Wed) generated bullish signal. On the other side, Wednesday's long-tailed Doji signaled that the downside is so far protected, but also pointed to indecision on approach key barrier at 1.2813 (10 June high). This implies that bulls may fail on the first test and prompt traders to collect profits that would push the price lower.
Overbought daily stochastic turned south and bullish momentum started to weaken, supporting scenario, which would require confirmation on close below 200DMA. Conversely, the third straight close above 200DMA would confirm firm bullish stance, but extended consolidation ahead of final push through 1.2813, cannot be ruled out. Immediate support lays at 1.2697 (200DMA) followed by 1.2645 (Fibo 23.6% of 1.2251/1.2767) and pivotal rising 10DMA/trendline support (1.2627/08). New high at 1.2767 marks initial resistance, ahead of 1.2813, violation of which would signal bullish continuation and unmask psychological 1.30 barrier.
Res: 1.2753; 1.2767; 1.2813; 1.2850
Sup: 1.2697; 1.2669; 1.2645; 1.2608
Interested in GBP/USD technicals? Check out the key levels
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.