GBPUSD – bears eye target at 1.3711 and main bull-trendline at 1.3650
Cable stands at the back foot on Monday and pressures Friday’s low at 1.3746, following narrow consolidation in Asia.
Friday’s long bearish candle weighs, with negative sentiment being underpinned by weak GDP data which further diminished expectations for BoE rate hike in May.
Daily techs show rising bearish momentum, with MA’s in firm bearish setup, keeping focus at key s/t support at 1.3711 (01 Mar low) and main bull trendline drawn from post-Brexit lows at 1.3650.
Meanwhile, the pair may show hesitation ahead of 1.3711 target and hold in extended consolidation as slow stochastic is deeply oversold on daily chart.
Limited upside is expected, with extended upticks to be capped by broken 100SMA (1.3870) and catalyst needed to signal stronger recovery and sideline persisting downside threats.
Res: 1.3792; 1.3840; 1.3870; 1.3901
Sup: 1.3746; 1.3711; 1.3650; 1.3613