GBPUSD: Sellers will arrive today at minor levels at 1.4100
GBPUSD: 1.4081
Cable was hit by the combination of a dovish Carney and another poor data report, with the UK retail sales missing expectation and leaving the topside breakout earlier in week looking like a major false break. Having just about survived the RS figure, Cable had pretty much held on to 1.4200 but then collapsed when Carney spoke, prevaricating on the timing of possible rate hikes after a May increase had been pretty much written in, sending Sterling down another 140 points to close near the lows of 1.4068.
1 hour/4 hour indicators: Turning lower
Daily Indicators: Turning lower?
Weekly Indicators: Turning higher?
Preferred Strategy: Cable almost reached our 1.4050 target much quicker than expected, and mow looks capable of reaching the 6 month rising trend support level at 1.4010/15, with a break of 1.4000 allowing a run back to 1.3965.
On the topside, sellers will arrive today at minor levels at 1.4100 and 1.4125 ahead of Fibo levels at 1.4140 and 1.4185 although this looks unlikely to be seen. If wrong, then above 1.4200 would open the way to return to 1.4220 and 1.4260 ahead of 1.4300.
Take a nimble stance today, but technically is does appear that further downside pressure may come about, looking for a run towards 1.4010/15.
| Resistance | Support | ||
| 1.4255 | (61.8% of 1.4376/1.4068) | 1.4068 | Session low |
| 1.4225 | 200 HMA | 1.4043 | (50% of 1.3710/1.4376) |
| 1.4185 | (38.2% of 1.4376/1.4068) | 1.4015 | Rising trend support |
| 1.4140 | (23.6% of 1.4376/1.4068) | 1.4000 | Minor |
| 1.4125 | Minor | 1.3965 | (61.8% of 1.3710/1.4376)/5 Apr low |
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.
