GBPUSD: Near term resistance will again be seen at 1.3535 ahead of the 200 DMA at 1.3550
|GBPUSD: 1.3489
Cable retested the 2018 low today, reaching 1.3450 ahead of a bounce to finish the day at 1.3510.
1 hour/4 hour indicators: Neutral
Daily Indicators: Possible basing formation.
Weekly Indicators: Turning lower
Preferred Strategy: The short term momentum indicators look mixed and a neutral stance is required on Thursday. Although Cable is likely to remain under pressure against the dollar, it is currently outperforming on the crosses and EurGbp does remain under pressure, today falling to 0.8730 ahead of a bounce back to 0.8750.
The longer term Sterling charts still look heavy, but may be forming a base, and below the trend low at 1.3450 would allow a run to the and the major Fibo level at 1.3400
If Cable does manage a squeeze higher, near term resistance will again be seen at 1.3535 ahead of the 200 DMA at 1.3550 and to the 15 May high of 1.3571 ahead of 1.3600/10.
Sidelined.
| Resistance | Support | ||
| 1.3607 | 14 May high | 1.3475 | Minor |
| 1.3571 | 15 May high | 1.3450/54 | 15 May low /Session low |
| 1.3550 | 200 DMA | 1.3425 | Minor |
| 1.3535 | 200 HMA | 1.3398 | (38.2% of 1.1822/1.4376) |
| 1.3500 | Minor | 1.3350 | Minor |
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