GBPUSD holds in extended sideways mode; the downside remains vulnerable
Cable was a tad higher in early Monday’s trading but remains within multi-day range. Multiple Doji’s confirm strong indecision after steep fall from post-Brexit recovery high at 1.4376 started to run out of steam but basing attempts so far lack confirmation.
Brief extension higher today broke above converged 200 and 10SMA’s which is seen as initial positive signal, however, threats of formation of stronger bearish signal on formation of 10/200SMA death-cross, see near-term risk still skewed lower.
Bearish setup of daily MA’s and momentum studies turned sideways add to existing pressure as thick 4-hr cloud weighs heavily, keeping in play risk of recovery stall and fresh attempts lower.
Bearish scenario requires firm break through recent range floor and violation of next pivot at 1.3442 (Fibo 38.2% of 1.1930/1.4376 recovery) to generate stronger bearish signal.
On the other side, close above congestion top at 1.3617, would be bullish signal for extension of recovery from 1.3460 (10 May low).
Res: 1.3596; 1.3617; 1.3676; 1.3742
Sup: 1.3557; 1.3546; 1.3500; 1.3484