GBPUSD: Neutral – Prefer to sell rallies

Jim Langlands FX Charts

GBPUSD: 1.2971

Cable traded a choppy range of 1.2926/1.2998 on Wednesday, largely unaffected by the FOMC Minutes but capped at 1.3000 and weighed down by the ongoing Brexit concerns.

The momentum indicators are mixed on Thursday, possibly with a mildly negative tone, and back below the session low would allow a move back to the good band of support between 1.2890/1.2910, below which could return to the distant 16 May low of 1.2865.

Back above 1.3000 would find strong resistance in the 1.3035/45 area, capped by last Thursday’s, 8-month high of 1.3047, but above which could run towards strong offers at 1.3075, and then further out, towards the long descending term trend resistance at around 1.3120. A break of this looks important and could lead to a quick run towards 1.3270 although that remains to be seen.

A neutral stance is required today although I mildly prefer to trade from the short side, looking to sell rallies towards 1.3000, with a SL placed above 1.3050. Watch out for the Provisional Q1 GDP (exp 0.3% qq, 2.1% yy) figure today.

24 Hour: Neutral – Prefer to sell rallies		Medium Term: Neutral
Resistance		Support
1.3120	Descending trend resistance	1.2952	23 May low
1.3075	(23.6% of 1.7191/1.1821)	1.2935	200 HMA
1.3047	18 May high	1.2914	19 May low
1.3033	23 May high	1.2900	Minor
1.2998	Session high	1.2888	18 May low

Economic data highlights will include:

UK Provisional GDP (Q1), Total Business Investment

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3079
2. R2 1.3039
3. R1 1.3007
PP 1.2967
1. S1 1.2935
2. S2 1.2895
3. S3 1.2862

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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