GBPUSD: Prefer to buy dips

Jim Langlands FX Charts

GBPUSD: 1.3102

Preferred 24-hour Strategy: Mildly Bullish. prefer to buy dips with a SL placed under 1.3040.

Having broken and closed above the triangle-top resistance of Friday, the momentum indicators are now looking more constructive, and buying dips appears to be the plan although Brexit issues will continue to create headwinds.

On the topside, good sellers will be seen right ahead, at 1.3120, but above which there is little to stop Cable heading on towards 1.3200 and then to 1.3280. Above there would be increasingly bullish, possibly opening up the major Fibo pivot at 1.3420 (50% pivot of 1.5017/1.1821) although this currently remains over the horizon.

On the downside, back below the recent trend high of 1.3047 could retest 1.3000, a break of which could have us quickly back at Friday’s low of 1.2933 although this seems unlikely today.

24 Hour Outlook: Prefer to buy dips		Medium Term: Neutral
Resistance		Support
1.3278	13 Sept high	1.3070	Minor
1.3200	Minor	1.3047	18 May high
1.3150	Minor	1.3000	Pivot
1.3120	Sept 2016 high	1.2970	Minor
1.3113	Friday high	1.2933	Friday low

Economic data highlights will include:

T: CPI, PPI, RPI

W: Inflation Report Hearing

T: Retail Sales

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3135
2. R2 1.3125
3. R1 1.3117
PP 1.3107
1. S1 1.3100
2. S2 1.3089
3. S3 1.3082

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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