Technical Outlook GBPUSD 31.08.2017

Technical Outlook GBPUSD 31.08.2017

GBPUSD- softer tone on Thursday but no clear direction while within the cloud

Cable is holding soft tone on Thursday and trades within daily cloud, with fresh weakness probing below 1.2900 handle, following strong downside rejection at 1.2875 (daily Tenkan-sen) on Wednesday.
Subsequent bounce was capped by daily cloud top, below which the pair closed for the day, signalling that the downside remains vulnerable.
Studies on daily chart are turning to full bearish setup, seeing risk of retesting Tenkan-sen and cloud base (1.2857). Firm break here is needed to signal further weakness and confirm lower top at 1.2978 (29 Aug upside rejection).
Falling 20SMA maintains downside pressure, however, the pair may extend action without clear direction while the price holds within the cloud.
Alternative scenario requires lift above 55 SMA (1.2938) to ease immediate downside pressure, but close above cracked Fibo 38.2% of 1.3268/1.2773 descend at 1.2962 is needed to turn near-term bias higher.

Res: 1.2918; 1.2942; 1.2962; 1.2983
Sup: 1.2875; 1.2857; 1.2821; 1.2793