GBPUSD: Prefer to buy dips
|GBPUSD: 1.3102
Preferred 24-hour Strategy: Mildly Bullish. prefer to buy dips with a SL placed under 1.3040.
Having broken and closed above the triangle-top resistance of Friday, the momentum indicators are now looking more constructive, and buying dips appears to be the plan although Brexit issues will continue to create headwinds.
On the topside, good sellers will be seen right ahead, at 1.3120, but above which there is little to stop Cable heading on towards 1.3200 and then to 1.3280. Above there would be increasingly bullish, possibly opening up the major Fibo pivot at 1.3420 (50% pivot of 1.5017/1.1821) although this currently remains over the horizon.
On the downside, back below the recent trend high of 1.3047 could retest 1.3000, a break of which could have us quickly back at Friday’s low of 1.2933 although this seems unlikely today.
| 24 Hour Outlook: Prefer to buy dips | Medium Term: Neutral | ||
| Resistance | Support | ||
| 1.3278 | 13 Sept high | 1.3070 | Minor |
| 1.3200 | Minor | 1.3047 | 18 May high |
| 1.3150 | Minor | 1.3000 | Pivot |
| 1.3120 | Sept 2016 high | 1.2970 | Minor |
| 1.3113 | Friday high | 1.2933 | Friday low |
Economic data highlights will include:
M:
T: CPI, PPI, RPI
W: Inflation Report Hearing
T: Retail Sales
F:
Interested in GBPUSD technicals? Check out the key levels
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