GBPUSD: 1.3121
Preferred Strategy: Sterling opened lower and traded heavily, down to a low of 1.3061; on the back of the Sunday Times article suggesting that a vote of no confidence in UK PM Theresa May is not too far away.
It has since recovered 1.3100, and with the momentum indicators still in neutral a cautious stance is required. Further choppy trade near current levels would not really surprise although CPI is due today and may cause some volatility.
On the topside, resistance will be seen at 1.3135 and at 1.3180/85, where a chart gap now needs to be filled. Back above 1.3200 would find good offers at around 1.3230 although I don’t see it up here today unless the CPI is very strong.
On the downside, support will be seen at 1.3060 ahead of 1.3025 and then at 1.3000.
Neutral.
| 24 Hour: Neutral | Medium Term: Neutral | ||
| FX Charts Position: | Flat | ||
| Resistance | Support | ||
| 1.3228 | 10 Nov high | 1.3100 | Minor |
| 1.3215 | (61.8% of 1.3320/1.3042) | 1.3085/80 | 100 DMA |
| 1.3200 | Minor | 1.3060 | Session low |
| 1.3180/85 | Session high / Chart Gap | 1.3026 | 6 Oct low |
| 1.3135 | 200 HMA/100 HMA | 1.3000 | Psychological |
Economic data highlights will include:
UK CPI, PPI, RPI (Oct)
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