GBP/USD Outlook: Bears Crack 1.30 Level, Eye Pivotal Support at 1.2904

Technical analysis of Forex market

Cable cracked 1.30 support in extension of weakness after lower than expected UK service sector PMI in Jan, released earlier today. Downside pressure increased after Monday’s close below 200SMA and sustained break below 1.30 and rising 20SMA (1.2977) would spark fresh bearish acceleration towards next pivotal support at 1.2904 (100SMA/Fibo 38.2% of 1.2397/1.3217), violation of which would generate reversal signal and open way for further decline. Bearish studies on lower timeframes and weakening daily techs work in favor of fresh bears. US non-manufacturing PMI is next key event (Jan 57.0 f/c vs upward-revised Dec figure at 58), with downside surprise expected to weaken dollar and slow pound’s bears. Conversely, stronger than expected Jan figure would further boost current bears.

Res: 1.3000; 1.3024; 1.3041; 1.3085
Sup: 1.2942; 1.2904; 1.2879; 1.2807

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