GBPUSD: Prefer to buy dips

Jim Langlands FX Charts

GBPUSD: 1.3119

Sterling has headed higher following the Fed decision and it has run into the good resistance at 1.3115/25, which may continue to cap it for a while, but above which there is little to stop it 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, minor support lies at 1.3080 and 1.3030 ahead of 1.3000. Below Monday’s low of 1.2983, unlikely for a while I suspect, could then see a return to last week’s low of 1.2933 which would find added support at the Fibo level at 1.2920.

Preferred Strategy: I prefer to buy dips, looking for a break of 1.3125, but with a SL placed below 1.2980.

24 Hour: Prefer to buy dips		Medium Term: Neutral
Resistance		Support
1.3280	15 Sept 2016 high	1.3080	Minor
1.3250	Minor	1.3030	Minor
1.3200	Minor	1.2998	Session low
1.3160	Minor	1.2983	24 July low
1.3125/20	18 July high/Session high	1.2952	21 July low

Economic data highlights will include:

T: CBI Distributive Trade Survey – Realised

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3290
2. R2 1.3208
3. R1 1.3164
PP 1.3082
1. S1 1.3038
2. S2 1.2956
3. S3 1.2912

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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