GBPUSD may extend pullback from new high at 1.4218 before bulls resume
Cable is holding within tight range on Friday, after rallying to new 2 ½ month high at 1.4218 on Thursday but was unable to hold gains and ended day in red.
Return below cracked bull-channel’s upper boundary and Thursday’s bearish daily candle with long upper shadow, weigh and keep in play risk of deeper pullback.
Bullish daily techs and thick daily cloud continue to underpin and see dips as buying opportunities ahead of fresh upside action.
Initial bids lay at 1.4075/70 (Thursday’s low / 26 Feb former high) followed by rising daily Tenkan-sen (1.4046) which is expected to contain.
Key supports lay at 1.40 zone (daily cloud top / rising 10SMA), loss of which would sideline bulls for deeper correction of 1.3711/1.4218 recovery rally.
Res: 1.4137; 1.4150; 1.4195; 1.4218
Sup: 1.4070; 1.4046; 1.4000; 1.3945