GBP/USD Outlook: Cable Falls To Six-Week Low, Deflated By Fading Risk Sentiment On Negative COVID-19 News

Cable accelerated lower after brief rise on better than expected UK labor data, as negative COVID news from Europe and warning that Europe’s third wave of coronavirus could hit Britain soured the sentiment.

Fresh weakness broke pivotal support at 1.3778 (Mar 5 correction low) and pressure the top of rising daily cloud (1.3743).

Daily close below 1.3778 would add to negative signals on completion of failure swing on daily chart, as a double-to at 1.40 zone weighs.

Rising bearish momentum and 10/20/30 DMA’s in bearish setup, maintain pressure, with penetration of daily cloud to expose next key support at 1.3641 (Fibo 38.2% of 1.2675/1.4238), break of which would confirm reversal.

Res: 1.3778, 1.3803, 1.3864, 1.3900.
Sup: 1.3743, 1.3700, 1.3641, 1.3597.