GBPUSD hits fresh highs ahead of UK inflation data

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable has fully retraced Monday’s pullback to 1.3046 on fresh rally that probes above Friday’s high at 1.3113. The pair is back to strength after Monday’s consolidation and looking for extension of last week’s strong rally.
Sustained break above 1.3109 (Fibo 38.2% of 1.5016/1.1930 descend) is needed to confirm bullish continuation towards strong barriers at 1.3445 (06 Sep 2016 high) and 1.3473 (weekly cloud top / 50% retracement of 1.516/1.1930).
UK CPI data are in focus with release above 3% expected to give fresh boost to the pound.
Conversely, higher base at 1.3046 (Mon low / Tue Asian session low, also former high of 18 May) could come under increased pressure on CPI reading below forecasted 2.9%).
Res: 1.3149; 1.3200; 1.3253; 1.3300
Sup: 1.3046; 1.3030; 1.3000; 1.2968

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3135
2. R2 1.3125
3. R1 1.3117
PP 1.3107
1. S1 1.3100
2. S2 1.3089
3. S3 1.3082

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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