GBPUSD 1.2994
Preferred Strategy: Neutral. Cable looks set to remain choppy ahead of the FOMC, Wednesday, and 1.2900/1.3050 may well cover it. The Q2 UK GDP (Wed) will be the highlight of the week for Sterling.
Sterling had a choppy end to the week, trading a tight range either side of 1.3000. The momentum indicators are a mixed/flat again on Monday and a cautious stance is required, with a soft US$ competing with Brexit woes to push Cable around.
On the downside, below last week’s low of 1.2933 would find support at the Fibo level at 1.2920, below which could then see a move towards 1.2850 (38.2% of 1.2589/1.3125) although this remains some way off.
On the topside, back above 1.3030 would find further offers at 1.3050/60. Beyond that, 1.3100 would see good sellers once again ahead of 1.3115/25, 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: Neutral | Medium Term: Neutral | ||
| Resistance | Support | ||
| 1.3125 | 18 July high | 1.2952 | Friday low |
| 1.3100 | Minor | 1.2932 | 20 July low |
| 1.3061 | 18 July high | 1.2920 | (38.2% of 1.2589/1.3125) |
| 1.3032 | 20 July high | 1.2900 | Minor |
| 1.3019 | Friday high | 1.2870 | Minor |
Economic data highlights will include:
M:
T: CBI Distributive Trade Survey – Orders
W: UK Provisional Q2 GDP, Inflation Report Hearing
T: CBI Distributive Trade Survey – Realised
F: Consumer Confidence
Interested in GBPUSD technicals? Check out the key levels
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