GBPUSD: Neutral – Prefer to sell rallies
|GBPUSD: 1.2971
Cable traded a choppy range of 1.2926/1.2998 on Wednesday, largely unaffected by the FOMC Minutes but capped at 1.3000 and weighed down by the ongoing Brexit concerns.
The momentum indicators are mixed on Thursday, possibly with a mildly negative tone, and back below the session low would allow a move back to the good band of support between 1.2890/1.2910, below which could return to the distant 16 May low of 1.2865.
Back above 1.3000 would find strong resistance in the 1.3035/45 area, capped by last Thursday’s, 8-month high of 1.3047, but above which could run towards strong offers at 1.3075, and then further out, towards the long descending term trend resistance at around 1.3120. A break of this looks important and could lead to a quick run towards 1.3270 although that remains to be seen.
A neutral stance is required today although I mildly prefer to trade from the short side, looking to sell rallies towards 1.3000, with a SL placed above 1.3050. Watch out for the Provisional Q1 GDP (exp 0.3% qq, 2.1% yy) figure today.
| 24 Hour: Neutral – Prefer to sell rallies | Medium Term: Neutral | ||
| Resistance | Support | ||
| 1.3120 | Descending trend resistance | 1.2952 | 23 May low |
| 1.3075 | (23.6% of 1.7191/1.1821) | 1.2935 | 200 HMA |
| 1.3047 | 18 May high | 1.2914 | 19 May low |
| 1.3033 | 23 May high | 1.2900 | Minor |
| 1.2998 | Session high | 1.2888 | 18 May low |
Economic data highlights will include:
UK Provisional GDP (Q1), Total Business Investment
Interested in GBPUSD technicals? Check out the key levels
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