GBPUSD: 1.3834
Sterling had a choppy day (1.3795/1.3875), leaving the outlook largely unchanged.
As we said before, there will be plenty of Brexit speeches this week, with UK PM, May speaking in Munich at the weekend. Before then, Foreign Minister, Boris Johnson will speak on Wednesday, and further speeches are due from Brexit minister David Davis, Trade minister Liam Fox, and Cabinet Minister David Lidington – dates to be confirmed.
1 hour/4 hour indicators: Neutral
Daily Indicators: Down.
Weekly Indicators: Up –Possible topping formation.
Preferred Strategy: As we said previously, Cable remains very choppy in the short term but the daily momentum indicators still hint that the general direction will be lower, so trading from the short side is still preferred.
While the short term momentum indicators look neutral I would stand aside but the dailies still look heavy and I suspect another run towards 1.3765 could be on the cards at some stage, below which would open the way to 1.3690/00.
On the topside, the initial Fibo resistance will be seen at 1.3875 and again at 1.3900 and using this as a guide to sell into is preferred today.
Sell GbpUsd @ 1.3910. SL @ 1.3955, TP @ 1.3835
| Resistance | Support | ||
| 1.3986 | 9 Feb high | 1.3795 | Session low |
| 1.3940 | Minor | 1.3764 | 9 Feb low |
| 1.3900 | (23.6% of 1.4315/1.3764) | 1.3735 | Minor |
| 1.3875 | Session high | 1.3690 | (50% of 1.3038/1.4345) |
| 1.3845 | Minor | 1.3650 | Minor |
Economic data highlights will include:
UK CPI, PPI, RPI
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