- GBP/USD gained traction on Wednesday and recovered a major part of the overnight losses.
- Some cross-driven strength from a fall in EUR/GBP extended some support to the major.
- Hawkish Fed expectations, stronger US ADP report underpinned USD and capped gains.
The Cable bounced on Wednesday after retesting 1.3814 (one-week low posted on Tuesday) as traders took some profits from a four-day drop.
Near-term bears face headwinds from strong bids at 1.3800 zones (1.13814 (Today/Tue lows / 1.3791/86 – lows of June 18/21) but the overall picture remains bearish on the daily chart.
A limited correction is seen likely before bears regain control as negative momentum continues to rise and daily moving averages are in the bearish configuration.
The bearish scenario sees a clear break of support at the 1.38 zone as a trigger for bearish acceleration towards 1.3670 higher base and rising (1.3629) in extension.
Res: 1.3891, 1.3939, 1.3950, 1.3986.
Sup: 1.3814, 1.3786, 1.3715, 1.3670.
