GBPUSD: 1.4100
Cable, initially underpinned by some solid UK Retail Sales data (+ 0.8% vs 0.4% exp), then reached a high of 1.4218 following the BOE Meeting, before reversing lower and closing the day at 1.4100.
1 hour/4 hour indicators: Turning higher
Daily Indicators: Turning higher.Weekly Indicators: Possible topping formation.
Preferred Strategy: Having reached the major descending trend resistance at 1.4220, which has so far been rejected, this will be the major resistance to watch for now, but ahead of which , minor levels will be at 1.4130 and 1.4170. Beyond 1.4220 would target 1.4250/70 although that remains for another day I suspect, but above there would head back to the 2018 high at 1.4345.
On the downside, support will be seen at minor levels, at 1.4075 and at 1.4025, and while the 4 hour charts look slightly heavy a more sustained test of the support may lie ahead. Further out though, the dailies still look positive, and buying dips may be the medium term trade.
| Resistance | Support | ||
| 1.4278 | 2 Feb high | 1.4100 | (23.6% of 1.3711/1.4218) |
| 1.4218 | Descending trend resistance/Session high | 1.4075 | Session low |
| 1.4200 | Minor | 1.4050 | Minor |
| 1.4170 | Minor | 1.4025 | (38.2% of 1.3711/1.4150) |
| 1.4130 | Minor | 1.3995 | 21 Mar low |
Economic data highlights will include:
BOE Quarterly Bulletin
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