GBPUSD: 1.2888
Sterling was choppy but little moved after Friday’s US jobs data, unable to take advantage of the US$ weakness seen elsewhere, but generally weighed down by the uncertainties of the upcoming election (Thursday) and what it will mean for the Brexit negotiations. The weekend terrorist action is unlikely to help Cable at all and may produce further downside momentum as it could possibly be of benefit to the labour party given that the electorate may decide that they are unconvinced by the Conservative parties anti terrorist measures. God help Cable/UK if Jeremy Corbyn actually gets in. Not going to happen but will be too close for comfort. A neutral stance seems wise for now and the 1.2800/1.2900 range may well continue to cover it early in the week but 1.2800 could come under early pressure on Monday..
While the short-term momentum indicators are neutral, the daily charts are pointing mildly lower, suggesting that cable is going to remain heavy. Back below 1.2830 would retest 1.2800 and the 31 May low of 1.2768. Under there could revisit minor support at 1.2750/55 but a break of while there is little to hold Cable up until 1.2685/90.
On the topside, above Friday’s high of 1.2903, resistance will again be seen at 1.2915/20 and then at the minor Fibo levels (@1.2940/80) of the fall from the trend high of 1.3047, ahead of 1.3000 and a possible retest of 1.3015 and eventually 1.3047.
As we said before, there are better things to look at right now although a better than expected Conservative win in next Thursday’s election would not surprise, taking Cable higher. A hung parliament would be an ominous outcome.
| 24 Hour: Neutral | Medium Term: Neutral | ||
| Resistance | Support | ||
| 1.3000 | Psychological | 1.2845 | Friday Low |
| 1.2980 | (76.4% of 1.3047/1.2768) | 1.2829 | 1 June low |
| 1.2940 | (61.8% of 1.3047/1.2768) | 1.2768 | 31 May low |
| 1.2915/20 | 1 June high/31 May high | 1.2756 | 21 April low |
| 1.2903 | Friday high | 1.2688 | (38.2% of 1.2108/1.3047) |
Economic data highlights will include:
M:
T:
W:
T: UK General Election
F: UK Consumer Inflation Expectation, Manufacturing/Industrial Production, Goods Trade Balance
Interested in GBPUSD technicals? Check out the key levels
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