GBPUSD: Mildly bullish

Jim Langlands FX Charts

GBPUSD: 1.3005

Cable has moved back to sit at the 1.3000 pivot, underpinned on Wednesday by some M+A activity.

The medium term outlook remains unchanged, given that the daily momentum indicators still look heavy, and below the session low would head towards 1.2950 and then to 1.2925, below which could easily head back towards 1.2850, and possibly to the 100 DMA at 1.2825 although this looks unlikely today.

The short term momentum indicators actually look a little more constructive, and on the topside, back above the session high of 1.3027 could revisit the 8 Aug high at 1.3052 and then on to 1.3070, above which look for a run back towards 1.3100

Preferred Strategy: Still prefer to sell rallies for the medium term downtrend although the intraday charts hint that we may see a short term squeeze to the topside. The UK Industrial Production figures are due today.

24 Hour: Mildly Bullish		Medium Term: Prefer to sell rallies
Resistance		Support
1.3110	(50% of 1.3266/1.2952)	1.2967	Session low
1.3072	(38.2% of 1.3266/1.2952)	1.2951	8 Aug low
1.3052	8 Aug high	1.2927	(50% of 1.2588/1.3267)
1.3025/27	(23.6% of 1.3266/1.2952) /Session high	1.2900	Minor
1.3000	Pivot	1.2847	(61.8% of 1.2588/1.3267)

Economic data highlights will include:

Manufacturing/Industrial Production, Trade Balance

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3094
2. R2 1.3062
3. R1 1.3033
PP 1.3000
1. S1 1.2971
2. S2 1.2939
3. S3 1.2910

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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