GBPUSD: Buying dips seems to be the plan

Jim Langlands FX Charts

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

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.

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