GBPUSD: Prefer to sell rallies

Jim Langlands FX Charts

GBPUSD: 1.2976

Sterling remained rangebound on Wednesday, running into good offers ahead of 1.3000 although it did move to a new 8 month high 1.2991 before finishing the day at 1.2960.

The momentum indicators remain mixed and we may be in for more of the same in the coming session, although if the US$ does remain under pressure, Cable will eventually see an upside break of 1.300, triggering stops, which would open the way to decent resistance at each of 1.3035 and 1.3075, and then further out to where the longer descending term trend resistance currently lies, at around 1.3135.

On the downside, 1.2900/10 will continue to act as support ahead of the 16 May low of 1.2865. Back below here could then see a move back to the 12 May low of 1.2844, to 1.2830 (4 May low) and possibly to 1.2800/10.

I mildly prefer to be long Sterling but it may be that we just chop around current levels.

24 Hour: Prefer to sell rallies		Medium Term: Neutral – Possible topside break?
Resistance		Support
1.3135	Descending trend resistance	1.2905	Session low
1.3075	(23.6% of 1.7191/1.1821)	1.2864	16 May low
1.3035	(38.2% of 1.5017/1.1821)	1.2844	12 May low
1.3000	Weekly cloud base	1.2830	4 May low
1.2990	Session high	1.2805	26 Apr low

Economic data highlights will include:

Q1 Provisional GDP, Foreign Bond/Stocks Investment

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3090
2. R2 1.3041
3. R1 1.3005
PP 1.2955
1. S1 1.2919
2. S2 1.2870
3. S3 1.2834

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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