GBPUSD: Buy @ 1.4270

Jim Langlands FX Charts

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

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.