GBPUSD: 1.2520 key level for the buyers to come back

Carol Harmer Charmer Trading

GBP/USD 28/03/17

Cable faltered just above 1.26...Now that’s not to say we are going to smash lower... Just that we have had a good run and in need of some correction…. that's fine...we expected that….. key levels are 1.2520 to 1.2485…. This s good support and I think this is where we will see buyers coming back into the market.

Now I know we look toppy on the technical indicators...the stochastics have already turned lower... but not yet the RSI... but as we know stochastics are leading indicators... so am watching these closely…. Now Cable can go sideways and ease the overbought conditions…. and as long as we hold above 1.2485 then we are still good to go.

Remember... we have to clear 1.2775 to see a move to 1.36... so bear this in mind…. A correction at this point is good for Cable... it gives traders another chance to get into the market at good levels…. t will not be overbought and is more likely to break the 1.2775 barrier
on the next leg higher.

I do not think given that we are so overbought that we can actually break this 1.2775 area this time…. but the weekly charts remain positive... so as I said... buy weakness.

Now below 1.2470 we see another move lower but 1.2410 looks set to hold it.

GBPUSD Current Trading Positions

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

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