GBP/USD Outlook: Cable Eases on Monday but Remains Within Three-Day Range and Without Clear Near-Term Direction

Technical analysis of Forex market

Cable edged lower on Monday, pressured by rising coronavirus death toll and no signs of any easing of the lockdown. The pair is currently holding at the lower side of congestion that extends into third day and probes below rising 10DMA (1.2466) which limited downside attempts in past two days. Daily studies so far lack clearer direction signal as RSI and momentum are flat and MA’s in mixed setup. Close below 10DMA would provide initial bearish signal, which will be verified on close below range floor (1.2406), but stronger signal for extension of pullback from 1.2647 (14 Apr high) can be expected on break of rising 20DMA (1.2350). Strong barriers at 1.2575 (weekly cloud base) and 200DMA (1.2647) mark significant barriers which so far capped upside attempts.

Res: 1.2466; 1.2506; 1.2575; 1.2647
Sup: 1.2406; 1.2350; 1.2270; 1.2210

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