GBPUSD: Prefer to buy dips

GBP/USD: 1.2357

Sterling was looking good today, in heading up to a new 3 week high of 1.2435, before the announcement of the impending trigger of Article 50 on March 29 sent it sharply lower, to 1.2335 before finishing at 1.2350.

The session high managed to touch the descending trend resistance at the top of the channel that has dominated the action over the last couple of months and it looks as though this is going to continue to be the case over the next few sessions, at least. The dailies still look mildly positive though, and on the topside the 100 DMA lies at 1.2405, which will provide a near-term cap ahead of the session high. A break of this would trigger stops, and this could see a continuation towards 1.2485 where the next, major descending trend resistance lies, which if seen should be tough to break at the first attempt although I don’t think it is in any danger at this stage. On the downside, minor support will be seen at 1.2325/35 and then at the minor Fibo levels of the run-up from the recent 1.2108 lows.  Buying dips still seems to be the plan from a technical perspective although politics could quickly change that theory, but in the meantime, look for 1.2310 as a possible buy area, with a SL placed under 1.2270, while looking for a run towards 1.2485.

24 Hour: Prefer to buy dips   Medium Term: Neutral  
Resistance     Support  
1.2475 Descending trend resistance 1.2334 Session low
1.2460 (76.4% of 1.2570/1.2108) 1.2323 17 March low
1.2435 Descending trend resistance /Session high 1.2310 (38.2% of 1.2108/1.2435)
1.2405 100 DMA 1.2270 (50% of 1.2108/1.2435)
1.2390 Minor 1.2230 (61.8% of 1.2108/1.2435)

 

Interested in GBPUSD technicals? Check out the key levels

    1. R3 1.2407
    2. R2 1.2401
    3. R1 1.2393
  1. PP 1.2387
    1. S1 1.2378
    2. S2 1.2373
    3. S3 1.2364

 

All content on this website, www.fxcharts.com.au (FX Charts PL) is a personal view only and offers absolutely no guarantee as to the correctness or otherwise of that opinion. The content here is of a “general nature” only and does not constitute personal or investment advice. The FX Charts website is not an inducement to trade Foreign Exchange (FX). No liability whatsoever is accepted for any loss or damage that may result, directly or indirectly, from any , comment, opinion, information or omission, whether negligent or otherwise, within the FX Charts Website. The information and any opinion or outlook expressed in this commentary may be based on assumptions or market conditions and may be liable change at any time, without notice.