GBPUSD – downside remains at risk on political uncertainty
Cable maintains weak tone on Wednesday, weighed by Brexit concerns and probes through cracked rising 10SMA (1.3400).
Tuesday dip to 1.3370 was short-lived, marking strong downside rejection on daily close well above 10SMA which marks initial support. However, political uncertainty keeps the pound under pressure and risk extension of pullback from 1.3549 peak, despite bullishly aligned daily studies, as twisting daily cloud continues to attract.
Firm break below 10SMA would open next pivotal support at 1.3354 (Fibo 38.2% of 1.3038/1.3549 upleg) with extended correction expected to find support at 20SMA (1.3300) and keep overall bulls in play for fresh attempts higher.
Close below 20SMA will be strong bearish signal.
Res: 1.3447; 1.3481; 1.3500; 1.3549
Sup: 1.3386; 1.3370; 1.3354; 1.3294