GBPUSD: Buying dips seems to be the plan

GBPUSD: 1.4000

Cable fell to 1.3800 before soaring to 1.4016 following the US CPI, and was further helped on its way by the outlook for a BOE rate hike in May (64%)/June (86%), while the ECB remain on hold in 2018.

1 hour/4 hour indicators: Turning higher

Daily Indicators: Turning Neutral.

Weekly Indicators:  Up –Possible topping formation.

Preferred Strategy:  It has been a wild ride today and with the short term momentum indicators pointing higher, we can possibly look for a run towards 1.4065, above which there is not too much resistance until 1.4120 (61.8% of 1.4345/1.3764). The dailies look less certain on the topside, and a failure here would allow a run back to 1.3930 and possibly back below 1.3900. For now, buying dips seems to be the plan.

Buy GbpUsd @ 1.3940. SL @ 1.3885, TP @ 1.4100

Resistance   Support  
1.4100 8 Feb high 1.3960 Minor
1.4066 8 Feb high 1.3930 200 HMA
1.4030 Minor 1.3900 Minor
1.4015 Minor 1.3870 100 HMA
1.33985 Minor 1.3800 Session low

 

GBPUSD

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