HomeContributorsTechnical AnalysisTechnical Outlook: GBPUSD – Three-Day Recovery Might Be Running Out Of Steam

Technical Outlook: GBPUSD – Three-Day Recovery Might Be Running Out Of Steam

Cable eases from recovery top at 1.4277 on Friday as strong three-day rally shows initial signals of fatigue. Daily RSI is overbought and turning lower while bulls are losing momentum which could result in corrective easing before renewed attempts towards targets at 1.4344 (25 Jan peak, the highest since 24 June 2016 Brexit vote) and 1.4385 (falling weekly 200SMA) break of which would generate fresh bullish signal and add to existing positive sentiment. Overall bullish structure favors further advance and extension of broader recovery phase from 1.1930 post-Brexit low. The pair is on track for the seventh straight bullish weekly close that supports the notion. Today’s close will be closely watched as red daily candle will be negative signal and could trigger further easing. Ascending 10SMA marks initial support at 1.4140 which is expected to ideally contain and keep near-term focus at the upside. Loss of 10SMA support would signal deeper pullback and would risk retest of key near-term support at 1.40 zone (Fibo 38.2% of 1.3457/1.4344 upleg/near 30 Jan correction low). Sustained break here would generate stronger bearish signal for reversal.

Res: 1.4277, 1.4300, 1.4344, 1.4385
Sup: 1.4207, 1.4159, 1.4140, 1.4093

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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