GBP/USD Outlook: Bears Resume After Five-Day Consolidation Under 1.40

Technical analysis of Forex market

Cable dropped to three-week low on Friday, after breaking below five-day congestion, capped by 1.40 barrier.

Fresh strength of the US dollar added pressure on sterling to extend pullback from new nearly three-year high (1.4238), with violation of 1.3869 (Fibo 23.6% of 1.2675/1.4238/range floor) and 1.3841 (rising 30DMA) generating fresh bearish signals.

Bears pressure 1.3800 (round figure support) eyeing 55DMA (1.3724) and more significant levels at 1.3641/39 (Fibo 38.2%/top of rising daily cloud).

Rising negative momentum and daily MA’s (10,20,30) in bearish setup support scenario, with US jobs data expected to be a key driver today.

Res: 1.3845, 1.3869, 1.3923, 1.3978
Sup: 1.3775, 1.3724, 1.3700, 1.3639