GBPUSD at new six-month low; bears look for test of weekly cloud top
Cable hit new six-month low on Tuesday, signaling continuation of larger downtrend after brief consolidation on Monday which was shaped in tight daily Doji.
Weakening Euro weighs on pound which eyes target at 1.3207 (weekly cloud top).
Daily MA’s are in full bearish setup, while 14-d momentum is turning south and 20-d Bollinger bands expand, maintaining bearish environment for further losses.
Penetration of weekly cloud would expose 1.3153 (50% retracement of 1.1930/1.4376, post-Brexit recovery phase) and open way towards next strong supports at 1.3038/26 (Oct/Nov 2017 higher base).
Falling daily 5SMA offers initial resistance at 1.3324 (session high), while descending 10SMA (1.3396) is expected to cap stronger upticks and keep bears intact.
Res: 1.3324; 1.3353; 1.3396; 1.3421
Sup: 1.3250; 1.3207; 1.3153; 1.3100