GBPUSD: Neutral

Jim Langlands FX Charts

GBPUSD: 1.3054

Preferred 24-hour Strategy: Neutral – wait for the CPI.

Sterling made an early European attempt to take out the 1.3112 Friday high, but unable to do so, it has since reversed and drifted lower to finish near session lows of 1.3046, the previous trend high.

The momentum indicators are a bit mixed, although the short term charts suggest minor weakness ahead. If so, on the downside, back below pivot of the session low/recent trend high of 1.3047 could retest 1.3000, a break of which could have us quickly back at 14 July’s low of 1.2933 although this seems unlikely today.

On the topside, back above 1.3000 would see good sellers once again at 1.3110/20, but above which there is little to stop Cable heading on towards 1.3200 and then to 1.3280. Above there would be increasingly bullish, possibly opening up the major Fibo pivot at 1.3420 (50% pivot of 1.5017/1.1821) although this currently remains over the horizon.

24 Hour Outlook: Neutral		Medium Term: Prefer to buy dips
Resistance		Support
1.3278	13 Sept high	1.3070	Minor
1.3200	Minor	1.3047/46	18 May high/Session low
1.3150	Minor	1.3000	Pivot
1.3120	Sept 2016 high	1.2970	Minor
1.3113	14 July high/Session high	1.2933	14 July low

Economic data highlights will include:

CPI, PPI, RPI

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3135
2. R2 1.3125
3. R1 1.3117
PP 1.3107
1. S1 1.3100
2. S2 1.3089
3. S3 1.3082

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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