GBPUSD: 1.4343
Cable traded higher again on Monday in reaching 1.4343, coming within 2 pips of the 2018/post-Brexit high, before closing the day at 1.4335. The expected UK rate hike in May is underpinning Sterling, with a 25bp hike priced in at 74% although on a more cautious note, Brexit negotiations resume this week and may temper gains. There is a string of important UK data this week, including the Unemployment today, and then the CPI, wage growth and Retail Sales, later in the week.
1 hour/4 hour indicators: Turning higher
Daily Indicators: Turning higher
Weekly Indicators: Turning higher?
Preferred Strategy: Although Cable has so far been unable to overcome at the highs on 13 Apr, the dailies do look positive and if the Jan (2018) high of 1.4346 is overcome, there is then little to stop a run at the post-Brexit high 1.5017
In the meantime, the hourly charts now look a little overbought and hint at a possible dip, but overall the preference is to look to buy dips at around 1.4270/80, below which could return to the session low at 1.420/30.
Buy GbpUsd @ 1.4270. SL @ 1.4220, TP @ 1.4400
Resistance | Support | ||
1.4500 | (50% pivot of 1.7035/1.821) | 1.4315 | Minor |
1.4475 | Minor | 1.4280 | Minor |
1.4425 | Minor | 1.4240 | Minor |
1.4390 | Minor | 1.4220/1.4228 | 13 Apr low /Session low |
1.4345/43 | 25 Jan high/13 Apr high | 1.4200 | (23.6% of 1.3710/1.4343) |
Economic data highlights will include:
UK Unemployment
All content on this website, www.fxcharts.com.au (FX Charts PL) is a personal view only and offers absolutely no guarantee as to the correctness or otherwise of that opinion. The content here is of a “general nature” only and does not constitute personal or investment advice. The FX Charts website is not an inducement to trade Foreign Exchange (FX). No liability whatsoever is accepted for any loss or damage that may result, directly or indirectly, from any , comment, opinion, information or omission, whether negligent or otherwise, within the FX Charts Website. The information and any opinion or outlook expressed in this commentary may be based on assumptions or market conditions and may be liable change at any time, without notice.
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.