GBP/USD outlook: Cable dips further after weak UK data, consolidation may precede fresh push lower
GBP/USD
GBPUSD fell further on Friday, holding in red for the third consecutive day, driven by stronger dollar and additionally pressured by unexpectedly weak UK Oct GDP numbers.
Fresh weakness tested support at 1.2618 (last week’s low / 100WMA) and pressure nearby Fibo support at 1.2610 (61.8% retracement of 1.2487/1.2811 upleg), where bears faced headwinds.
Near term action may pause for consolidation, before renewed attack at 1.2618/10 pivots, loss of which to open way towards next targets at 1.2563/40 (Fibo 76.4% / lower 20-d Bollinger band) and expose key short-term supports at 1.2500 / 1.2487 (psychological / Nov 22 low).
Initial resistance lays at 1.2673 (20DMA) guarding 1.2700/11 (psychological / falling 10DMA) which should cap upticks and keep near-term bears in play.
Daily studies are predominantly negative (MA’s in bearish setup / south-heading 14-d momentum is approaching the centreline) with additional negative signals from weekly chart (reversal pattern is forming/converging 10/200WMA about to form death-cross).
Res: 1.2673; 1.2711; 1.2735; 1.2750.
Sup: 1.2619; 1.2563; 1.2500; 1.2487.
Interested in GBP/USD technicals? Check out the key levels
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