GBPUSD – corrective pullback could extend to key 10SMA / Fibo 38.2% supports at 1.3368/53
Cable stands at the back foot at the beginning of the week, as last week’s double upside rejection at 1.3549 and Friday’s close in red weighs.
Risk of deeper pullback towards pivots at 1.3368/53 (rising 10SMA / Fibo 38.2% of 1.3038/1.3548 upleg) exists as indicators are reversing from overbought territory on daily chart and daily cloud twists later this week and could attract for further weakness.
Overall bullish bias sees dips as corrective and providing fresh buying opportunities, with 1.3350 zone seen as ideal reversal point, but deeper dips towards 1.3290/70 zone (50% retracement / rising 10SMA) cannot be ruled out.
Only firm break below 20SMA would generate stronger bearish signal and sideline bulls for deeper correction.
Res: 1.3513; 1.3549; 1.3570; 1.3600
Sup: 1.3418; 1.3368; 1.3353; 1.3290