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|
|1.3278||13 Sept high||1.3070||Minor|
|1.3200||Minor||1.3047/46||18 May high/Session low|
|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
- R3 1.3135
- R2 1.3125
- R1 1.3117
- PP 1.3107
- S1 1.3100
- S2 1.3089
- S3 1.3082
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