GBPUSD – limited recovery action keeps overall bearish bias intact
Cable is standing at the front foot in early Monday’s trading and probes above broken Fibo 61.8% support at 1.3110 on extension of recovery from Friday’s low at 1.3026.
Gap-higher opening on Monday and probe above 1.3110 handle is bullish signal, but near-term action was so far capped by 55SMA / base of falling hourly cloud at 1.3129.
Limited recovery is expected while 55SMA caps, with fresh attempts towards targets at 1.3016/00 (100SMA / psychological support) seen likely after bearish signal was generated on Friday’s close below 1.3110 (Fibo 61.8% of 1.2773/1.3655 rally).
Fresh downside action could be also attracted by thin daily cloud which twisted on Friday, with break below 1.3000 to look for final push towards key short-term support at 1.2773 (24 Aug low / 200SMA).
Conversely, sustained break above 55SMA would spark extension of corrective action from 1.3026 towards hourly cloud top at 1.3175 and falling daily Tenkan-sen at 1.3243, in extension.
Res: 1.3129; 1.3175; 1.3200; 1.3243
Sup: 1.3074; 1.3026; 1.3016; 1.3000