GBP/USD Outlook: Cable Is Consolidating Above New 11-Month Low

Technical analysis of Forex market

Bears are taking a breather in early Friday after hitting new 11-month low, as traders collect profits from almost 1.4% drop in past two days.

Upticks are expected to offer better levels to re-enter bearish market, as weekly studies remain in full bearish setup and the pair is on track for the third consecutive weekly fall, although bears require weekly close below former low at 1.3411 (Sep 29) to confirm negative stance and signal bearish continuation which could extend towards 1.3200 (weekly cloud base).

This also marks an initial resistance which has been cracked, bringing in focus the next barrier at 1.3466 (Fibo 23.6% of 1.3833/1.3353 fall).

Extended upticks should remain capped under 1.3525/36 pivots (falling 10DMA / Fibo 38.2% of 1.3833/1.3353) to keep bears in play, however, failure to register a weekly close below 1.3411 would delay bears for extended consolidation.

Res: 1.3433, 1.3466, 1.3500, 1.3525.
Sup: 1.3353, 1.3280, 1.3200, 1.3164.