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
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