GBPUSD: Mildly Bullish
GBPUSD: 1.2974
Cable has seen a choppy session either side of 1.3000 although it was not helped today by the soft UK data and remains not too far above the day’s lows, albeit in a relatively tight range (1.2950/1.3014)
The medium term outlook remains unchanged given that the daily momentum indicators still look heavy, and below the session low would head towards 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 4 hour momentum indicators actually look very mildly constructive, and on the topside, back above Wednesday’s 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. All up, stay square until the US session.
| 24 Hour: Mildly Bullish | Medium Term: Prefer to sell rallies | ||
| Resistance | Support | ||
| 1.3110 | (50% of 1.3266/1.2952) | 1.2951 | Session low/8 Aug low |
| 1.3072 | (38.2% of 1.3266/1.2952) | 1.2927 | (50% of 1.2588/1.3267) |
| 1.3052 | 8 Aug high | 1.2900 | Minor |
| 1.3025/27 | (23.6% of 1.3266/1.2952) /9 Aug high | 1.2875 | Minor |
| 1.3014 | Session high | 1.2847 | (61.8% of 1.2588/1.3267) |
Interested in GBPUSD technicals? Check out the key levels
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.
