GBPUSD: Buy @ 1.4270

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

GBPUSD

 

GBPUSD

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