GBPUSD stands at the front foot; eyes strong barriers provided by 20SMA / bear-trendline
Cable remains in green on Monday and attempts towards last Friday’s high at 1.3888, which marks initial barrier ahead of more significant 1.3910 zone, where 20SMA repeatedly capped upside attempts last week.
Falling trendline which connects high at 1.4345 with series of lower top and currently lies at 1.3946, reinforces the resistance zone.
Despite US jobs data on Friday failed to produce more strength for the greenback, current recovery action faces tough work ahead, as mixed setup of daily MA’s and weak momentum keep the downside vulnerable.
Repeated failure at 20SMA would risk fresh weakness for fresh attack at daily cloud base (currently at 1.3777) which has so far contained several attacks and continues to underpin the action from 1.3711 (01 Mar low).
Stronger bullish signal would be generated on break above 20SMA and bear-trendline (1.3910/46) which would open way towards next pivot at 1.4000 (daily cloud top / psychological barrier).
On the other side, violation od cloud base would be bearish signal and would risk extension od downtrend from 1.4345, on break below 1.3711 low.
Res: 1.3910; 1.3929; 1.3946; 1.4000
Sup: 1.3847; 1.3797; 1.3777; 1.3711