GBPUSD: Buying dips seems to be the plan
|GBPUSD: 1.4000
Cable fell to 1.3800 before soaring to 1.4016 following the US CPI, and was further helped on its way by the outlook for a BOE rate hike in May (64%)/June (86%), while the ECB remain on hold in 2018.
1 hour/4 hour indicators: Turning higher
Daily Indicators: Turning Neutral.
Weekly Indicators: Up –Possible topping formation.
Preferred Strategy: It has been a wild ride today and with the short term momentum indicators pointing higher, we can possibly look for a run towards 1.4065, above which there is not too much resistance until 1.4120 (61.8% of 1.4345/1.3764). The dailies look less certain on the topside, and a failure here would allow a run back to 1.3930 and possibly back below 1.3900. For now, buying dips seems to be the plan.
Buy GbpUsd @ 1.3940. SL @ 1.3885, TP @ 1.4100
| Resistance | Support | ||
| 1.4100 | 8 Feb high | 1.3960 | Minor |
| 1.4066 | 8 Feb high | 1.3930 | 200 HMA |
| 1.4030 | Minor | 1.3900 | Minor |
| 1.4015 | Minor | 1.3870 | 100 HMA |
| 1.33985 | Minor | 1.3800 | Session low |
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