Cable faces a crucial test at 1.3500 following yesterday's triple blow from disappointing UK PMI data, hawkish comments from Powell, and concerning UK public sector borrowing figures ahead of November's Budget.
In this ThinkMarkets analysis, we break down the key technical levels as GBPUSD loses the round 1.3500 support but remains within its upward channel.
Key focus areas:
Key Levels to Watch:
Bias: Cautiously bearish while below channel support
The pound continues to face domestic headwinds with stalling economic data and fiscal concerns, making any recovery challenging despite potential Fed dovishness.
Cable traders, watch this critical technical juncture closely.
Trade responsibly with ThinkMarkets - your trusted forex partner.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
In this ThinkMarkets analysis, we break down the key technical levels as GBPUSD loses the round 1.3500 support but remains within its upward channel.
Key focus areas:
- Immediate Risk: Break below channel support targeting 1.3372 double bottom
- Critical Level: 1.3335 - invalidation of inverse head & shoulders pattern
- Fibonacci Support: 61.8% retracement cluster around 1.3340
- Trading Strategies: Three approaches for the potential breakdown
Key Levels to Watch:
- Support: 1.3500 (breaking), 1.3450, 1.3372, 1.3340
- Resistance: 1.3550 bounce target
Bias: Cautiously bearish while below channel support
The pound continues to face domestic headwinds with stalling economic data and fiscal concerns, making any recovery challenging despite potential Fed dovishness.
Cable traders, watch this critical technical juncture closely.
Trade responsibly with ThinkMarkets - your trusted forex partner.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Trade closed: target reached
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.