GBPUSD: 1.3938
Cable remained under heavy pressure from a resurgent US$ on Monday but also continues to suffer from Carney’s comments last week in his dovish shift in BoE expectations for a May rate hike. Monday saw a low of 1.3925, a new 5 week low, and looks heavy still as we head into Tuesday.
1 hour/4 hour indicators: Turning lower
Daily Indicators: Turning lower?
Weekly Indicators: Turning higher?
Preferred Strategy: The hourlies are showing some minor bullish divergence, but with the 4 hour momentum indicators pointing sharply lower, a break of 1.3925 would allow a run to the Mid-March lows at 1.3913/1.3890, below which there is not too much to stop a run to 1.3865 (76.4% of 1.3710/1.4376).
On the topside, sellers will arrive today at minor levels at 1.3965 and 1.3980 ahead of 1.4000 and the Fibo level at 1.4030, and further out at 1.4095 although this looks unlikely to be seen again for a while. Take a nimble stance today, but technically is does appear that further downside pressure may come about, looking for a run towards 1.3965.
| Resistance | Support | ||
| 1.4070 | Minor | 1.3925 | Session low |
| 1.4030 | Session high /(23.6% of 1.4376/1.3925) | 1.3913 | 19 Mar low |
| 1.4030 | Minor | 1.3890 | 16 Mar low |
| 1.3980 | Minor | 1.3868 | (76.4% of 1.3710/1.4376) |
| 1.3965 | Minor | 1.3850 | Minor |
Economic data highlights will include:
Public Sector Net Borrowing Requirements, CBI Distributive Trade Survey – Orders
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