GBPUSD: 1.2896
GbpUsd saw some early strength in heading up to 1.2940 although this has since been reversed and it is finishing more or less flat on the day. With the UK now fully in Election mode, Brexit talks are now on the back burner and it looks like we are in for some choppy trade, with the UK CPI being today’s focus.
The short term momentum indicators for Cable look mixed on Tuesday and it may be that we have further choppy 1.2840/1.2940 trade ahead, although if we head back below the 12 May low of 1.2844, then it could fall to 1.2830 (4 May low) and possibly to 1.2800/10.
On the topside, back above 1.2900, would see offers at the session high (1.2940) and the 11 May high of 1.2947. Beyond this looks doubtful today but if wrong we could see a run towards the double top (1.2988), beyond which could trigger a move to 1.3000 – last seen in September. Above that would open the way to decent resistance levels seen at each of 1.3020, 1.3035 and to 1.3060, and then further out to where the longer descending term trend resistance currently lies at around 1.3135.
A neutral stance seems wise, although Cable does look as though it may be forming a rounding top formation in the 4 hour charts, so we may trade with a slightly heavy bias.
| 24 Hour: Neutral | Medium Term: Neutral | ||
| Resistance | Support | ||
| 1.3000 | Weekly cloud base | 1.2874 | Session low |
| 1.2985/88 | 55 WMA /8 May high/10 May high | 1.2844 | 12 May low |
| 1.2947 | 11 May high | 1.2830 | 4 May low |
| 1.2940 | Session high | 1.2805 | 26 Apr low |
| 1.2915/20 | 100 HMA/200 HMA | 1.2780 | (23.6% of 1.2108/1.2987) |
Economic data highlights will include:
UK CPI, PPI, RPI
Interested in GBPUSD technicals? Check out the key levels
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