GBPUSD – recovery above daily cloud likely to be limited
Cable started to gain traction and edged higher on Wednesday morning, after the latest drop penetrated rising daily cloud (cloud top at 1.2702) but found firm ground at 1.2682 (100DMA) where dips were repeatedly rejected.
Subsequent rise may generate initial bullish signal on return and close above daily cloud, though more work at the upside (violation of daily Tenkan-sen at 1.2780 and lift above Fibo 38.2% of 1.3044/1.2672 at 1.2814) will be required to validate signal.
On the other hand, bearish daily studies (daily Tenkan/Kijun-sen bear cross / strong negative momentum) warn of limited correction which would provide better selling levels for renewed attack at 100DMA and nearby 200DMA (1.2651).
Res: 1.2739; 1.2760; 1.2780; 1.2815
Sup: 1.2682; 1.2651; 1.2612; 1.2584
