GBPUSD – bears are taking a breather but outlook remains negative
Cable dipped to new three-week low at 1.3835 after fresh bearish acceleration triggered stops below 1.3900 (50% of 1.3457/1.4344 / daily Kijun-sen).
The pair remains firmly in red for the third straight day, but strong bears may take a breather on global stock’s swing.
However, bearish bias remains intact as risk-of mode continues to rule and sterling being lower than the greenback on list of safe haven currencies.
Brief consolidation was so far struggling to break above 1.39 barrier, but may extend higher as hourly indicators just reversed from oversold zone and head north.
Intraday lows at 1.3940 zone are next barrier ahead of daily high at 1.40, also previous strong support, which should keep the downside protected.
Fresh bears could attack next target at 1.3800 (Fibo 61.8% of 1.3457/1.4344, reinforced by rising 30SMA).
Only close above 1.40 would delay immediate bears for stronger correction.
Res: 1.3940; 1.4000; 1.4025; 1.4056
Sup: 1.3835; 1.3800; 1.3750; 1.3700