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Technical Outlook: GBPUSD – Extended Weakness Pressures 100SMA Support, Near-Term Outlook Is Negative

Cable is strongly in red for the second day, after yesterday’s close below daily cloud top/Tenkan-sen line generated bearish signal. Fresh acceleration lower in Asia took out support at 1.2443 (Fibo 61.8% of 1.2374/1.2553 upleg) and is currently pressuring 100SMA at 1.2413. Weak near-term studies see risk of further weakness and full retracement of 1.2374/1.2553 upleg, to confirm lower top at 1.2553 and open way for deeper correction of larger 1.2107/1.2613 rally. Political uncertainty maintains pressure on sterling that results in weakening daily chart bulls. Yesterday’s low at 1.2463 marks initial resistance ahead of strong barrier at 1.2494 (session high/daily Tenkan-sen/cloud top) and only sustained break here would neutralize downside threats.

Res: 1.2463, 1.2494, 1.2522, 1.2553
Sup: 1.2414, 1.2401, 1.2374, 1.2360

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