GBPUSD: Buy @ 1.4270
|GBPUSD: 1.4343
Cable traded higher again on Monday in reaching 1.4343, coming within 2 pips of the 2018/post-Brexit high, before closing the day at 1.4335. The expected UK rate hike in May is underpinning Sterling, with a 25bp hike priced in at 74% although on a more cautious note, Brexit negotiations resume this week and may temper gains. There is a string of important UK data this week, including the Unemployment today, and then the CPI, wage growth and Retail Sales, later in the week.
1 hour/4 hour indicators: Turning higher
Daily Indicators: Turning higher
Weekly Indicators: Turning higher?
Preferred Strategy: Although Cable has so far been unable to overcome at the highs on 13 Apr, the dailies do look positive and if the Jan (2018) high of 1.4346 is overcome, there is then little to stop a run at the post-Brexit high 1.5017
In the meantime, the hourly charts now look a little overbought and hint at a possible dip, but overall the preference is to look to buy dips at around 1.4270/80, below which could return to the session low at 1.420/30.
Buy GbpUsd @ 1.4270. SL @ 1.4220, TP @ 1.4400
| Resistance | Support | ||
| 1.4500 | (50% pivot of 1.7035/1.821) | 1.4315 | Minor |
| 1.4475 | Minor | 1.4280 | Minor |
| 1.4425 | Minor | 1.4240 | Minor |
| 1.4390 | Minor | 1.4220/1.4228 | 13 Apr low /Session low |
| 1.4345/43 | 25 Jan high/13 Apr high | 1.4200 | (23.6% of 1.3710/1.4343) |
Economic data highlights will include:
UK Unemployment
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