GBPUSD: Neutral – Prefer to sell rallies

Jim Langlands FX Charts

GBPUSD: 1.2937

Cable has had a choppy, rangebound session (1.2931/1.3015) leaving the outlook unchanged, but is finishing towards its lows, not helped by the weak Q1 GDP reading of -0.2% (exp +0.3%).

The momentum indicators are mixed/neutral on Friday, 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, and the session high of 1.3015, 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.

As with yesterday, 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.

24 Hour: Neutral – Prefer to sell rallies		Medium Term: Neutral
Resistance		Support
1.3120	Descending trend resistance	1.2931	Session low
1.3075	(23.6% of 1.7191/1.1821)	1.2914	19 May low
1.3047	18 May high	1.2900	Minor
1.3033	23 May high	1.2888	18 May low
1.3014	Session high	1.2965	16 May low

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3078
2. R2 1.3047
3. R1 1.2994
PP 1.2963
1. S1 1.2911
2. S2 1.2879
3. S3 1.2827

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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