GBPUSD – signals of stall on repeated upside rejection
Cable stands at the back foot in early Tuesday’s trading and attacks 1.3300 support broken bear-trendline connecting former 1.3337/20 highs.
Monday’s action ended in Doji candle with long upper shadow, signaling possible stall, as repeated upside rejection (at 1.3357) happened today.
Initial negative signal could be expected on firm break below 1.3300 which would expose next strong support at 1.3276 (daily cloud top).
Slow stochastic is heading south on daily chart after reversing from overbought territory and shows more room at the downside.
Extended dips would find another support at 1.3260 (converged 10/55 SMA’s forming bull cross) where corrective action is expected to reverse.
Stronger bearish pressure could be expected on break below daily cloud ( cloud base lies at 1.3214, reinforced by daily Kijun-sen).
Res: 1.3357; 1.3382; 1.3401; 1.3415
Sup: 1.3276; 1.3260; 1.3214; 1.3203