GBPUSD – risk of deeper correction below 20SMA
Cable stands at the back foot in trading of Monday and fell near Friday’s low (1.3356) at the beginning of European session, after recovery attempts stalled at 1.3431 (capped by broken 10SMA).
Fresh weakness pressures strong support at 1.3354 (Fibo 38.2% of 1.3038/1.3549 rally) where last week’s downside attempts were repeatedly rejected.
Overall bullish structure is expected to stay intact while 1.3354 Fibo support and rising 20SMA (1.3338) hold corrective action of larger 1.3038/1.3549 rally.
Break here would signal deeper correction and expose supports between 1.3300 and 1.3256 (provided by daily Kijun-sen / MA’s).
Weak near-term techs support this scenario.
Res: 1.3419; 1.3431; 1.3453; 1.3520
Sup: 1.3354; 1.3338; 1.3300; 1.3256