GBP/USD technical analysis: Cable challenging 1.2900 handle, drifting down in the New York session

 

 

In October, the Cable skyrocketed above the main daily simple moving averages (DMAs) and hit levels not seen since mid-May 2019. Bulls need a daily close above the 1.3000 figure and the October high at the 1.3013 level. 

 

 

 

 

GBP/USD is trading above the 1.2900 figure and its main SMAs on the four-hour chart, suggesting a bullish bias in the medium term. However, the market formed a double top with the October highs. For buyers, a break of the 1.2989 resistance is necessary to open the doors to gains towards the 1.3024 level and the 1.3100 handle.

 

 

 

 

 

Sterling/Dollar is trading at daily lows while challenging the 1.2906 support level. A clear break below the level can open the doors to further weakness towards the 1.2880 and 1.2850 support levels, according to the Technical Confluences Indicator.