GBPUSD – bears firmly in play on political uncertainty
Cable remains in red on Friday and extends strong fall from the previous day, as rising political uncertainty over PM May’s future continue to heavily weigh on sterling.
Fresh bears on Friday broke below 1.3110 (Fibo 61.8% of 1.2773/1.3655 rally), generating bearish signal which could drive the pair towards 1.3015 (100SMA) and psychological 1.3000 support.
Bearish techs and rising negative sentiment are supportive for further losses, which could be additionally boosted if US jobs data surprise at the upside.
Meanwhile, bears may take a breather on oversold studies but no firmer signals seen for now as slow stochastic continues to head south in deeply oversold territory.
Broken Fibo 61.8% support and 55SMA now act as solid resistances at 1.3110/1.3128, as the latter is so far capping today’s action.
Only firm break here would sideline immediate bearish threats.
Res: 1.3128; 1.3200; 1.3220; 1.3250
Sup: 1.3061; 1.3015; 1.3000; 1.2981