GBPUSD attacks daily cloud again ahead of UK CPI data

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable is attempting again into daily cloud, after cloud top (1.2435) capped Monday's action and subsequent dip resulted in daily close below the cloud. The pair came under pressure on announcement that UK will start formal divorce process with the EU on Mar 29, but dips were so far limited and contained by daily Kijun-sen at 1.2337. This keeps in play post-Fed bullish sentiment, seeing scope for renewed attempts through daily Ichimoku cloud (spanned between 1.2379 and 1.2435). Bullish setup of most of daily MA's and fresh momentum, keeps upside scenario favored, ahead of release of UK inflation data (due at 09:30 GMT; forecasted at 2.1% vs 1.8% previous month). Release above the forecast is expected to boost the pair for renewed attempt through 100SMA (1.2410) and attack at daily cloud top pivot (1.2435). Firm break above the cloud would accelerate towards 1.2459 (Fibo 76.4% of 1.2568/1.2107) and would expose psychological 1.2500 barrier. Conversely, repeated failure at daily cloud and repeated close below it, would generate negative signal. Daily Kijun-sen marks next downside trigger, loss of which would increase risk of reversal.

Res: 1.2410; 1.2435; 1.2459; 1.2476

Sup: 1.2379; 1.2337; 1.2309; 1.2271

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.2407
2. R2 1.2401
3. R1 1.2393
PP 1.2387
1. S1 1.2378
2. S2 1.2373
3. S3 1.2364

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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