GBP/USD daily outlook

On Thursday, the pound fell against USD, despite the publication of upbeat UK data, as the US dollar was supported by comments from yesterday's Federal Reserve Chairman Janet Yellen.
During European morning trade, the pair GBP/USD reached 1.3002, the session low, and subsequently consolidated at 1.3004, shedding 0.13%.

Key levels to watch for:
Support: 1.3000; 1.2875; 1.2790;
Resistance: 1.3200; 1.3355.

The pair is still pushing to the downside despite the spinning top and hammer bars that have formed on the 4-hour time frame. A breakout below 1.2945 would be a signal for another drop towards 1.2915 - 1.2900.

The British Pound was up against the US Dollar on Friday. By the close of US trading GBP/USD was trading at 1.2978, gaining 0.08%. I believe that the support is now located at the level of 1.2914, Monday's low, and resistance is at the level of 1.3060 - the maximum of Thursday.

A gap down, the pair seems continue its sideway but overall downtrend movement.

UK economy continue strong with a contruction PMI beating estimates above 55. When the May comments settle, the pair might head towards 1.30 again. Even the oil boost is good for the UK economy.

i agree 1.30 is def on the cards this week

GBP/USD broke below 1.2914 and it is clearly very bearish for the moment. I think that next target will be the previous low at 1.2788.

Not only did GBP/USD reach 1.2788 but it broke below that level. I think next target is 1.2700.

GBP/usd is way oversold .waiting for a rebound to 1.30

GBP/USD formed a new historic low at 1.2685 and rebounded from it, also forming four-hour hammer and an inverted hammer bar above that level. I think next target is 1.2800 - 1.2820 again.

hope my 2 shorts positions go in profit before the hammer strikes

The GBPUSD was indecisive yesterday. The bias remains bearish in nearest term testing 1.2600 before targeting 1.2500. Immediate resistance remains around 1.2790. A clear break and daily close back above that area could lead price to neutral zone in nearest term testing 1.2860 area but overall I remain bearish.

It appears that nothing can stop the GBP/USD drop, yesterday's retracement was only temporary. The pair broke below 1.2685 and I think next target will be 1.2600.

And that is how you manipulate a market.

Although the pair has quickly rebounded back to around 1.243 level but after the Pound collapse open the possibility to the downside of 1.2000 handle.

csc2009 posted:
Although the pair has quickly rebounded back to around 1.243 level but after the Pound collapse open the possibility to the downside of 1.2000 handle.

 I agree. We might see some retracement after such a massive drop, but for the moment the pair remains very bearish.

Already saw the retracement Friday - whether you take the 1.19 lows at most brokers or the or the 1.12 etc from some sources - pair retraced > 78.6 that day. Saw lots of folks calling for a bounce completely ignoring this. Holding short.

The British pound continued to depreciate against the dollar for a third day on Monday. The pair slid 35 pips to 1.2359, with a decline of over 5% for the past eight sessions. Trading took place in the final values 1.2443 and 1.2344. Technically the bears remain in the leading position, but recovery of the RSI and inability to breakthrough from current levels may lead to start of an upward movement.