GBP/USD Outlook: Bears Accelerate On Dovish Comments From BoE’s Governor Bailey

Technical analysis of Forex market

Cable continues to travel south for the sixth straight day and hit 11-week low on Thursday after dovish tone from BoE Governor Bailey’s speech accelerated bears.

Fresh weakness broke through pivotal support at 1.3786 (June 21 low) completing failure swing pattern on daily chart and signaling continuation of larger downtrend from 1.4249 (2021 high of June 1).

Daily close below 1.3786 is needed to confirm scenario and expose targets at 1.3670 (Mar-Apr higher base) and 1.3635 (200DMA).

Falling daily Tenkan-sen (1.3887) should cap upticks and keep bears intact.

Res: 1.3806, 1.3834, 1.3887, 1.3939.
Sup: 1.3773, 1.3715, 1.3670, 1.3635.