GBP/USD Outlook: Bulls Hold Grip Despite Weak GDP And Pressure Key 1.39 Resistance Zone

Technical analysis of Forex market

Cable extends strong advance into the second straight day as bulls ignored weak July GDP data but remain underpinned by weaker dollar and BOE’s 4-4 split on possible rate hike, ahead of central bank’s Sep 23 policy meeting. The action was also supported by Wednesday’s Hammer candle which signaled reversal and Thursday’s bullish signal on close above 200DMA (1.3822), while long tail of this week’s candle adds to positive signals.

Bulls pressure key barriers at 1.3900 zone (Fibo 76.4% of 1.3983/1.3601 at 1.3893, daily cloud top at 1.3910 and 100DMA at 1.3915), with sustained break here to open way towards next key levels at 1.3983/1.4000 (July 30 peak/psychological).

Caution on fading bullish momentum on daily chart which may provide headwinds but bulls are expected to remain in play while holding above key supports at 1.3822/18 (broken 200DMA/daily cloud base).

Res: 1.3893, 1.3910, 1.3957, 1.3983.
Sup: 1.3837, 1.3818, 1.3800, 1.3765.