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
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