GBPUSD – bears met target at 1.3711 but without break lower for now
Cable extended weakness on Monday and eventually tested target at 1.3711 on Monday, marking full retracement of 1.3711/1.4376 bull-phase.
The price bounced after touching 1.3711 target, signaling strong support, where bears may show stronger hesitation.
Deeply oversold slow stochastic is moving sideways on daily chart, lacking firmer bullish signal and keeping bears firmly in play for probe through 1.3711 and test of another strong supports at 1.3655/50 (former high of 17 Sep / bull-trendline of 2016 low, hit after post-Brexit vote bearish acceleration).
Firm break of 1.3711 pivot is also needed to complete double-top pattern on weekly chart and signal further weakness.
Meanwhile, stronger upticks are expected to run out of steam on approach to broken 100SMA at 1.3870, to keep intact firm near-term bearish structure.
Res: 1.3792; 1.3840; 1.3870; 1.3901
Sup: 1.3711; 1.3650; 1.3613; 1.3549