GBPUSD: Prefer to buy dips

Jim Langlands FX Charts

GBPUSD: 1.2903

Sterling continues to squeeze the shorts in heading up to a high of 1.2916 on Thursday, and is closing the session just below there, but above 1.2900, and is looking as though further gains are in store.

As we said before, the daily charts do appear to be building a bull flag formation and a break of the session high could see a move to 1.3000, last seen in September, and possibly higher to where the longer term trend resistance currently lies at around 1.3135. On the downside, support will be seen at the session low (1.2838) and again at 1.2805, below which would signal a return to 1.2720 and lower although this seems unlikely. Buying dips is preferred; looking for another test of the day’s high and eventually 1.3000 and higher. Keep stops below 1.2800. Watch out for the UK Provisional Q1 GDP (exp 0.4% qq, 2.2% yy).

24 Hour: Prefer to buy dips		Medium Term: Mildly bullish
Resistance		Support
1.3050	Minor	1.2838	Session low
1.3000	Psychological	1.2860	Minor
1.2985	55 WMA	1.2804	26 Apr low
1.2945	Minor	1.2774/71	25 Apr low/24 Apr low
1.2917	Session high	1.2717	(23.6% of 1.2108/1.2905)

Economic data highlights will include:

Consumer Confidence, Q1 Provisional GDP

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3014
2. R2 1.2966
3. R1 1.2935
PP 1.2887
1. S1 1.2857
2. S2 1.2809
3. S3 1.2778

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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