GBPUSD – 20 SMA continues to cap and keep n/t risk skewed lower
Cable ticked lower in early European trading after holding with narrow range in Asia and remains capped by 20SMA (1.3910) for the fifth straight day.
Bear-trendline off 1.4345 high lies just above (1.3934) and produces additional pressure.
Momentum studies are bullishly aligned but MA’s are mixed and RSI in neutral mode, lacking clearer direction signal.
Strong offers at 1.3910/30 zone keep the downside vulnerable and repeated failure to break higher could spark fresh weakness towards strong support at 1.3782 (daily cloud base).
Bullish scenario requires close above trendline resistance (also Fibo 61.8% of 1.4069/1.3711 bear-leg) to generate bullish signal for extension towards 1.40 zone (daily cloud top / psychological barrier.
UK’s Spring statement is key event for the pound today, as UK Finance Minister Hammond is expected to give more details about economic growth outlook for the Brexit-bound economy.
Also, release of US CPI data, due later today, would give fresh signals.|
Res: 1.3910; 1.3934; 1.3985; 1.4000
Sup: 1.3878; 1.3849; 1.3820; 1.3782