GBPUSD: Neutral – Prefer to sell rallies
|GBPUSD: 1.2937
Cable has had a choppy, rangebound session (1.2931/1.3015) leaving the outlook unchanged, but is finishing towards its lows, not helped by the weak Q1 GDP reading of -0.2% (exp +0.3%).
The momentum indicators are mixed/neutral on Friday, 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, and the session high of 1.3015, 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.
As with yesterday, 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.
| 24 Hour: Neutral – Prefer to sell rallies | Medium Term: Neutral | ||
| Resistance | Support | ||
| 1.3120 | Descending trend resistance | 1.2931 | Session low |
| 1.3075 | (23.6% of 1.7191/1.1821) | 1.2914 | 19 May low |
| 1.3047 | 18 May high | 1.2900 | Minor |
| 1.3033 | 23 May high | 1.2888 | 18 May low |
| 1.3014 | Session high | 1.2965 | 16 May low |
Interested in GBPUSD technicals? Check out the key levels
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